Bitcoin -focused firm Strategy, formerly known as MicroStrategy, has reported a substantial net loss of $670.8 million for the fourth quarter, during which it acquired an additional 218,887 Bitcoin . The company’s revenue for the same quarter reached $120.7 million, representing a modest 3% year-on-year decrease that fell short of analyst expectations by around $2 million.
The financial report revealed a dramatic increase in expenses, which soared nearly 700% year-on-year, totaling approximately $1.1 billion. This surge is attributed to the launch of the “21/21 Plan,” aimed at securing $42 billion in capital within the next three years, seeking to bolster its Bitcoin acquisitions through a mix of equity and fixed-income securities. To date, the firm has reportedly completed $20 billion of this capital initiative, primarily funded by issuing senior convertible notes and utilizing debt.
Leadership at Strategy expressed confidence in the firm’s progress, highlighting that it is ahead of its anticipated timeline and is strategically positioned to enhance shareholder value, thanks to robust backing from both institutional and retail investors. The company now holds a total of 471,107 Bitcoin , valued at over $45 billion, establishing itself as the largest corporate Bitcoin holder globally.
In terms of performance metrics, Strategy’s “BTC Yield” has reached 74.3% for 2024, although the firm plans to lower its target for 2025 to 15%. New metrics, “BTC Gain” and “BTC $ Gain,” have also been introduced to provide clearer insights into the company’s financial health. These metrics quantify the Bitcoin held at the beginning of a period and the associated dollar gains.
Renaming itself on February 5, Strategy aims to emphasize its dedication to Bitcoin adoption while continuing its tradition of offering business intelligence services. The company’s stock experienced a decline, dropping 3.3% on the rebranding day and an additional 0.72% in after-hours trading.
