MicroStrategy has officially rebranded itself as Strategy, revealing its new identity on February 5.
The rebranding features a new logo with a stylized “B,” representing the company’s status as the world’s largest corporate holder of Bitcoin. This change comes after the company’s fourth consecutive quarterly loss and emphasizes its increased focus on accumulating Bitcoin.
The firm’s latest earnings report showed a net loss of $670.8 million for the fourth quarter of 2024, which translates to $3.03 per share. In contrast, the company reported a profit of $89.1 million, or 50 cents per share, during the same period last year. The increase in losses was primarily due to a $1.01 billion impairment charge on its Bitcoin holdings, up significantly from the $39.2 million recorded the previous year. However, the company has confirmed that this will be the last time such impairment charges will affect earnings, as it plans to implement new fair-value accounting rules starting in the first quarter of 2025.
The report highlights that a new approach introduced by the Financial Stability Accounting Board will enable Strategy to represent the actual market value of Bitcoin in its financial statements. This change has the potential to reduce volatility in reported earnings. Currently, Strategy holds 471,107 BTC, valued at approximately $46 billion. The latest acquisition occurred on January 27, when it purchased 10,107 BTC for about $1.1 billion.
In addition to the rebranding, Strategy plans to raise $2 billion through a preferred stock offering, part of its broader 21/21 Plan, which aims to raise $42 billion over the next three years. The offering, expected in Q1 2025, will feature perpetual preferred stock, which will take precedence over Class A common stock and may include convertibility, cash dividends, and share redemption options. Currently, the company holds 446,400 BTC, valued at $43.67 billion, reflecting a 56.78% unrealized gain of $15.82 billion.
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