MicroStrategy, now known as Strategy, has recently announced its largest quarterly Bitcoin acquisition to date, significantly increasing its holdings in the final quarter of 2024. The firm acquired 218,887 BTC in Q4, bringing its total holdings to 447,470 BTC by the end of December. As of now, Strategy holds a total of 471,107 BTC, valued at around $46 billion.
This aggressive accumulation of Bitcoin aligns with Strategy’s “21/21 Plan,” a funding strategy designed to secure $42 billion over the course of three years. The plan aims to raise $21 billion in equity and $21 billion in fixed-income securities to support ongoing Bitcoin acquisitions. CEO Phong Le noted that the company has already secured $20 billion of its planned funding, surpassing its initial timeline. This strong investor support positions Strategy to enhance shareholder value throughout 2025.
To track its Bitcoin strategy more effectively, Strategy has introduced key performance indicators (KPIs). CFO Andrew Kang explained that these metrics will provide deeper insights into the company’s financial standing and reinforce its commitment to transparency. One of these metrics, BTC Yield, measures the percentage change in Bitcoin holdings relative to outstanding shares. Strategy reported a BTC Yield of 74.3% for 2024 and aims to achieve an annual BTC Yield of over 15% in 2025.
Additionally, Strategy has implemented BTC Gain and BTC $ Gain metrics to evaluate its Bitcoin-related financial performance. BTC Gain reflects the increase in Bitcoin holdings over a specific period, while BTC $ Gain translates this growth into dollar terms. The firm recorded a BTC Gain of 140,538 BTC in 2024 and has set a $10 billion BTC $ Gain target for 2025.
Despite the expansion of its Bitcoin portfolio, Strategy reported a net loss of $670.8 million in Q4 2024, equivalent to $3.03 per share. This loss was primarily attributed to a $1.01 billion impairment charge on Bitcoin holdings, a significant increase from the previous year’s $39.2 million. However, upcoming shifts in accounting standards are expected to stabilize the company’s financial reporting.
Starting in Q1 2025, Strategy will adopt fair-value accounting standards set by the Financial Accounting Standards Board (FASB). This change will require Bitcoin holdings to be measured at fair value, with gains and losses reflected in net income each reporting period. This move is anticipated to provide more clarity and accuracy in the financial reporting of Strategy’s Bitcoin investments.
In conclusion, Strategy’s aggressive Bitcoin acquisition strategy, coupled with the implementation of key performance indicators and upcoming changes in accounting standards, positions the company for continued growth and success in the evolving financial landscape.