MicroStrategy, now known as ‘Strategy,’ has made headlines after reporting a $670 million impairment loss in Q4 2024, primarily due to its extensive Bitcoin holdings. Despite these setbacks, the company is doubling down on its Bitcoin strategy, reflecting its unwavering belief in the cryptocurrency’s long-term value.

The Rebranding Move: From MicroStrategy to ‘Strategy’

Highlighting its crypto-centric identity

On February 5, 2025, MicroStrategy officially rebranded as ‘Strategy,’ unveiling a new logo featuring a stylized “B” to symbolize its strong association with Bitcoin. This strategic shift marks the company's fourth consecutive quarterly loss, yet underscores its intensified focus on Bitcoin accumulation. The rebrand aligns with its role as the largest corporate holder of Bitcoin globally.

Financial Hit: A Staggering $670 Million Q4 Loss

Understanding the depth of the impairment

The Q4 earnings report revealed a net loss of $670.8 million, equivalent to $3.03 per share, a sharp contrast to the $89.1 million profit reported in the same period last year. This downturn was primarily due to a $1.01 billion impairment charge on its Bitcoin holdings—significantly higher than the $39.2 million charge from the previous year. However, new fair-value accounting rules set to be adopted in Q1 2025 may help stabilize future earnings.

Bitcoin Buying Spree Continues

Despite losses, Bitcoin remains the core strategy

Even with substantial financial setbacks, Strategy continues to aggressively accumulate Bitcoin. In Q4 alone, the company made its largest-ever Bitcoin purchase, acquiring 218,887 BTC for $20.5 billion. As of January 27, 2025, the company holds 471,107 BTC, valued at approximately $46 billion. This relentless acquisition strategy has driven significant growth in Strategy’s stock, contributing to its inclusion in the Nasdaq 100 index.

Market Reactions and Stock Performance

Mixed investor sentiment following earnings report

Following the Q4 earnings announcement, Strategy’s stock (MSTR) dropped 3.33%, closing at $336.7. Despite this dip, the stock remains up over 12% year-to-date, reflecting the market's mixed reaction to the company’s Bitcoin-focused approach. While some investors express concerns over the financial losses, others remain optimistic about the company’s long-term crypto strategy.

Shifts in Financing and Bitcoin Acquisition Approach

Strategic changes to sustain Bitcoin growth

Looking ahead, Strategy plans to diversify its financing methods, focusing on fixed-income options like convertible bonds and preferred stock. CEO Phong Le announced a goal to raise $42 billion over the next three years to fund Bitcoin acquisitions, with $20 billion already secured. Notably, for the first time in 12 consecutive weeks, Strategy did not sell any shares to finance Bitcoin purchases, signaling a temporary shift in its acquisition strategy.