Strategy Posts Q4 Loss Amid Bitcoin Revaluation, Sets $10B Target for 2025
Strategy (MSTR), the newly rebranded bitcoin-focused company, reported a fourth-quarter net loss of $3.03 per share, a sharp decline from a profit of $0.50 per share in the same period last year. The loss was primarily driven by an impairment charge on its massive 471,107 BTC holdings, currently valued at over $45 billion with bitcoin trading just above $97,000.
Despite the quarterly setback, Strategy remains bullish on its BTC position, setting a target of $10 billion in gains from its holdings by the end of 2025.
The company has made headlines throughout the week, first by upsizing its preferred stock offering and then officially changing its name from MicroStrategy to reflect its bitcoin-centric strategy.
The evolving accounting landscape may also impact future financial reporting, with the Financial Stability Accounting Board (FASB) rolling out a fair value accounting rule for corporate digital asset holdings. While optional in 2024, it will become mandatory starting in Q1 2025.
Following the earnings report, Strategy’s stock saw marginal losses in after-hours trading, extending a 3% decline earlier in the day as bitcoin briefly dipped to $97,000.
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