Strategy reports $670M loss

Strategy, formerly MicroStrategy, reported a net loss of $670.8 million for the fourth quarter, despite increasing its Bitcoin (CRYPTO:BTC) holdings by 218,887 BTC.  

The company's revenue reached $120.7 million, a 3% year-over-year decrease, and missed analyst expectations.  

Expenses surged by nearly 700% to $1.1 billion due to the "21/21 Plan," which aims to allocate $42 billion to Bitcoin purchases over three years through equity and fixed-income securities.  

CEO Phong Le stated that Strategy has completed $20 billion of its $42 billion capital plan and is "well-positioned to further enhance shareholder value."  

The company now holds 471,107 Bitcoin, valued at over $45 billion, making it the largest corporate holder of the cryptocurrency.  

The company officially announced its rebranding to "Strategy," reflecting a simplified, ambitious direction focusing on digital capital and business intelligence.  

As part of the rebranding, Strategy is also changing its logo to feature a stylised letter B, "signifying the company's Bitcoin strategy."  

Strategy's “BTC Yield” reached 74.3% in 2024, but the firm lowered its target to 15% for 2025.  

The company also introduced "BTC Gain" and "BTC $ Gain" metrics to reflect the health of its balance sheet.  

The company rebranded from MicroStrategy on Feb. 5, a name it held since its founding in 1989.  

The rebranding includes a new Bitcoin logo and orange brand color.  

This transformation includes a newly designed bitcoin emblem, an orange color scheme, and the launch of an online merchandise shop.  

The stock fell 3.3% to $336.70 during trading on Feb. 5.