Bitcoin-focused firm Strategy—formerly known as MicroStrategy—reported a net loss of $670.8 million in the fourth quarter of 2023, marking its most aggressive Bitcoin acquisition period yet. The company added 218,887 Bitcoin during the quarter, further solidifying its position as the largest corporate Bitcoin holder globally.
Massive Bitcoin Purchases Fuel Q4 Losses
On February 5, Strategy announced $120.7 million in revenue for Q4, reflecting a 3% year-over-year decline and missing analyst expectations by roughly $2 million. However, the firm’s expenses surged nearly 700% to $1.1 billion as it ramped up its Bitcoin acquisition efforts under its new “21/21 Plan.” This ambitious strategy aims to raise $42 billion over the next three years through a mix of equity and fixed-income securities, with much of the capital directed toward Bitcoin purchases.
Strategy has already secured $20 billion of the targeted $42 billion, primarily funded through senior convertible notes and debt. Despite the substantial Q4 losses, CEO and President Phong Le remains optimistic, stating the company is “significantly ahead” of its original timeline and poised to boost shareholder value by leveraging robust institutional and retail support.
Record Bitcoin Holdings and New Performance Metrics
With its latest purchases, Strategy’s Bitcoin holdings have swelled to 471,107 BTC, valued at over $45 billion, making it the largest Bitcoin-holding corporation worldwide. To provide greater transparency on its Bitcoin investments, Strategy introduced new performance metrics:
- BTC Yield: A key performance indicator measuring the percentage change between Bitcoin holdings and Assumed Diluted Shares Outstanding. In 2024, BTC Yield reached 74.3%, but the firm plans to reduce this target to 15% in 2025.
- BTC Gain: Reflects the number of Bitcoins held at the start of a period, multiplied by the BTC Yield.
- BTC $ Gain: Shows the dollar value of the BTC Gain.
Rebranding to Reflect Bitcoin Commitment
On February 5, MicroStrategy officially rebranded to Strategy to emphasize its dedication to Bitcoin. The new name features the Bitcoin symbol “₿,” signaling the firm’s continued commitment to corporate Bitcoin adoption. Despite this shift, Strategy will maintain its business intelligence services, a core offering since its founding in November 1989 by Executive Chairman Michael Saylor. Saylor remains the driving force behind the company’s Bitcoin-centric strategy.
Following the Q4 earnings report and rebranding announcement, Strategy’s stock (MSTR) fell 3.3% on February 5, closing at $336.70, with an additional 0.72% drop in after-hours trading, according to Google Finance data.
