Strategy, formerly known as MicroStrategy, reported a net loss for the fourth quarter of 2024 amid aggressive Bitcoin acquisition strategy.
Financial Performance and Expenses
On February 5, Strategy reported $120.7 million in revenue for the fourth quarter, a 3% year-on-year decline, falling short of analyst estimates by $2 million. The company's expenses soared nearly 700% year-on-year to $1.1 billion as it executed its '21/21 Plan,' targeting $42 billion capital over three years to acquire more Bitcoin.
Outlook and Investor Support
CEO Phong Le stated that the firm is significantly ahead of its original timeline and benefits from strong institutional and retail investor support. The company's Bitcoin holdings now stand at 471,107 BTC, worth over $45 billion, the largest corporate Bitcoin holding worldwide.
Rebranding and Future Goals
On February 5, Strategy rebranded from MicroStrategy to emphasize its commitment to corporate Bitcoin adoption, continuing to offer business intelligence services. The Bitcoin symbol '₿' was added to the company's new name. Strategy's (MSTR) stock fell 3.3% to $336.70 on the day of the rebranding and dropped another 0.72% after hours.
Despite financial losses, Strategy aims to enhance shareholder value through strategic Bitcoin acquisition and strong investor backing.
