In an effort to underscore its focus on Bitcoin and artificial intelligence as transformative technologies, MicroStrategy has announced a rebranding, now operating under the name "Strategy." Phong Le, President and CEO, highlighted the change by emphasizing the company's global appeal and strategic direction.
The rebranding comes on the heels of a significant milestone: the completion of $20 billion from a $42 billion capital plan, primarily through the digital transformation of capital markets via Bitcoin investments.
This strategic move is evident in the recent financial report stating that Strategy holds 471,107 BTC, valued at approximately $46 billion.
Strategy's Q4 2024 earnings reveal the firm's largest ever increase in quarterly Bitcoin holdings, with an addition of 218,887 BTC acquired since the end of Q3 for $20.5 billion. Andrew Kang, CFO, remarked on the substantial growth and focus on Bitcoin as the company continues to expand its digital asset portfolio.
In a related announcement, Strategy reported a Bitcoin Yield KPI of 74% for 2024 and set a minimum target of 15% for 2025. The Bitcoin Yield measures the company's effectiveness in Bitcoin acquisitions over time. Additionally, two new metrics were introduced: BTC Gain, representing the number of bitcoins accumulated, and BTC $Gain, translating BTC Gain into dollar terms based on quarter-end market pricing.
The firm recorded a BTC Gain of 140,538 in 2024 and aims for a BTC $Gain of $10 billion in 2025. These metrics are designed to evaluate and enhance shareholder value through strategic Bitcoin acquisitions.
Despite advancements on the Bitcoin front, Strategy's traditional software division faced hurdles, reporting a Q4 loss of $671 million and a 3% drop in revenue to $120.7 million from $124.5 million the previous year. As a result, company shares (MSTR) saw a 3.3% decline to $332 in after-hours trading, though they remain 586% higher compared to the same period last year.