Bitcoin stacking firm Strategy, formerly known as MicroStrategy, has reported a net loss of $670.8 million in the fourth quarter as the company acquired an additional 218,887 Bitcoin. On February 5th, Strategy announced revenue of $120.7 million for the fourth quarter, a 3% decline compared to the previous year and missing analyst estimates by approximately $2 million.
The company’s expenses for the fourth quarter increased by nearly 700% compared to the previous year, reaching $1.1 billion. This was due to the implementation of its “21/21 Plan,” which aims to raise $42 billion in capital over the next three years through the purchase of equity and fixed-income securities in order to acquire more Bitcoin.
Strategy has already completed $20 billion of its $42 billion capital plan, primarily through senior convertible notes and debt. CEO and president Phong Le stated that the company is currently ahead of schedule and well-positioned to enhance shareholder value with the support of institutional and retail investors.
As of now, Strategy holds 471,107 Bitcoin, with a total value of over $45 billion, making it the largest Bitcoin holder among all corporations worldwide.
The company’s “BTC Yield,” a key performance indicator that measures the percentage change ratio between its Bitcoin holdings and its Assumed Diluted Shares Outstanding, reached 74.3% in 2024. However, Strategy is lowering its target to 15% for 2025. Additionally, the company introduced the annual metrics “BTC Gain” and “BTC $ Gain” to better reflect the state of its balance sheet. BTC Gain represents the number of Bitcoin held at the beginning of a period multiplied by the BTC Yield, while BTC $ Gain represents the dollar value of the BTC Gain.
On February 5th, Strategy rebranded from MicroStrategy, its name since its establishment in November 1989 as a business intelligence firm under the leadership of executive chairman Michael Saylor. Saylor has been the driving force behind the company’s Bitcoin investment strategy. Strategy added the Bitcoin logo “₿” to its new name to demonstrate its commitment to corporate Bitcoin adoption, while continuing to provide business intelligence services.
According to Google Finance data, Strategy’s stock (MSTR) fell 3.3% on February 5th, closing at $336.70, and has further declined 0.72% in after-hours trading.