Strategy Doubles Down on Bitcoin Despite Fourth Straight Quarterly Loss
Feb 6, 2025 – Strategy (formerly MicroStrategy), the world’s largest corporate holder of Bitcoin, has reported a fourth consecutive quarterly loss amid its aggressive push to accumulate more of the cryptocurrency. Despite booking a staggering $1.01 billion impairment loss on its Bitcoin holdings, the company remains committed to its vision, completing $20 billion of a planned $42 billion capital raise to purchase additional Bitcoin.
Financial Performance & Bitcoin Strategy
Strategy reported a net loss of $670.8 million ($3.03 per share) for Q4 2024, a sharp contrast to the $89.1 million profit ($0.50 per share) in the same period last year. Revenue from its traditional software business declined by 3% year-over-year to $120.7 million, further solidifying its pivot toward cryptocurrency investments.
The Tysons Corner-based firm’s Bitcoin holdings have now reached 471,107 BTC, valued at approximately $46 billion as of February 2. The latest quarter saw Strategy’s largest-ever Bitcoin purchase, with 218,887 BTC acquired for $20.5 billion.
CEO Phong Le confirmed the company’s shift toward fixed-income issuance, with plans to raise more capital through convertible bonds and preferred stock. Meanwhile, CFO Andrew Kang stated that Q4 2024 would be the last quarter reflecting Bitcoin impairment losses, as a new accounting rule taking effect in Q1 2025 will allow Strategy to measure Bitcoin at fair market value.
Market Impact & Strategic Rebranding
As part of its deepening commitment to Bitcoin, the company has rebranded from MicroStrategy to simply “Strategy,” unveiling a new logo that features a stylized “B” representing Bitcoin.
According to Bernstein analyst Gautam Chhugani, the rebranding signals a clear intent to shift away from its legacy software business and reinforce its role as the “world’s first and largest Bitcoin Treasury Company.”
The company’s stock, which surged nearly fivefold in 2023, securing a spot in the Nasdaq 100 index, saw little movement in extended trading following the Q4 earnings report. However, its future trajectory remains tied to Bitcoin’s price movements, making Strategy a de facto Bitcoin investment vehicle.
Bitcoin Market Analysis & Future Outlook
Bitcoin is currently trading between $97,821 and $98,313, with a market cap of $1.96 trillion. The cryptocurrency remains 9.2% below its all-time high but has experienced increased volatility in recent sessions.
Technical analysis suggests two possible scenarios:
Bullish Case: Holding above $98,000 could trigger a rally toward the $104,000-$109,000 resistance range, supported by long-term moving averages.
Bearish Case: Failure to maintain support above $98,000 could push Bitcoin down toward $96,000 and potentially as low as $91,000.
Momentum indicators show mixed signals. The Commodity Channel Index (CCI) at -140 suggests a potential buying opportunity, while the MACD at 117 indicates lingering bearish pressure.
Short-term moving averages, such as the 10-period EMA at $100,555 and the 20-period SMA at $102,427, reflect downward pressure, while the 50-period EMA at $98,844 provides some support for a possible recovery.
Conclusion: A High-Risk, High-Reward Strategy
Strategy’s full-scale pivot into Bitcoin presents both significant opportunities and risks. The company is positioning itself as the dominant corporate Bitcoin holder, with a long-term bullish outlook. However, its financial stability is now almost entirely dependent on Bitcoin’s price movements.
While investors remain divided on the sustainability of this approach, one thing is clear: Strategy is betting big on Bitcoin, and its future success hinges on the performance of the world’s most valuable cryptocurrency.
Leave a Reply