MicroStrategy rebrands to ‘Strategy’ after posting a $670M Q4 Bitcoin impairment loss

Microstrategy, now known as “strategy”, reported an amazing loss of $ 670 million in the fourth quarter, mainly bitcoin. However, despite the success, he continues to accumulate BTC, believing in its long -term value.

Microstrategy officially has renowned as a strategy. Announced on February 5, the rebranding is delivered with a new logo with a stylized “B”, reflecting its identity as the largest Bitcoin holder in the world.

This decision coincides with the fourth, consecutive quarterly loss of the company and an even more important accent on Bitcoin (BTC) accumulation.

The latest gains reportAlso published on February 5, a net loss of $ 670.8 million revealed for the fourth quarter of 2024, resulting in $ 3.03 per share. A year earlier, the company had declared a profit of $ 89.1 million, or 50 cents per share.

The losses were widely conducted by a deficiency burden of $ 1.01 billion on its Bitcoin holdings, a strong increase compared to the $ 39.2 million recorded in the same quarter of last year.

However, this will be the last time that these depreciation costs will have an impact on profits, because the company should adopt new accounting rules of equitable value from the first quarter of 2025.

The new approach, introduced by the Financial Stability Accounting Board, will allow the strategy to reflect the real market value of Bitcoin in its financial statements, potentially reducing the volatility of declared profits.

Despite these financial setbacks, the strategy continues to aggressively extend its Bitcoins farms. On the fourth quarter only, the company made its largest purchase of Bitcoin, acquiring 218,887 BTC for $ 20.5 billion.

To date, the strategy hold 471,107 BTC, valued at around $ 46 billion. The last addition In the Treasury, came on January 27, when he bought 10,107 BTC worth around 1.1 billion dollars.

The relentless purchasing spree bitcoin spree helped its stock rally in the past year, the actions climbing almost five times in 2024 and obtained a place for the company in the NASDAQ 100 index in December.

However, the feeling of investors around the last profits was less enthusiastic. On February 5, MSTR’s shares fell 3.33%, closing at $ 336.7, although the stock remains more than 12% year to date.

The company also moves its approach to finance its Bitcoin strategy. CEO Phong said that in 2025, the strategy will focus more on fixed income financing, including convertible obligations and privileged actions.

Last year, the company set itself an ambitious objective of increase $ 42 billion over three years to feed its Bitcoin acquisitions, with $ 20 billion already guaranteed.

Meanwhile, there was a slight adjustment in the way the company acquires Bitcoin. On February 3, executive president Michael Saylor announcement That, for the first time in 12 consecutive weeks, the strategy had not sold any actions to finance Bitcoin purchases between January 27 and February 2.

Although this marks a temporary gap of its usual approach, the company remains determined to increase its Bitcoin reserves over time.