Strategy™ (formerly MicroStrategy) Reports Q4 2024 Financial Results, Holds 471,107 BTC Amid Bitcoin and AI Leadership
Strategy™ (Nasdaq: MSTR), the world’s largest corporate holder of bitcoin and a pioneer in integrating Bitcoin and artificial intelligence (AI) into its business model, has announced its financial results for the fourth quarter of 2024. The company, formerly known as MicroStrategy, rebranded to Strategy™ to reflect its mission of championing transformative technologies like Bitcoin and AI. With $20 billion of its $42 billion capital plan already completed—well ahead of schedule—Strategy is poised to continue driving shareholder value while leading the digital transformation of capital in financial markets.
Record-Breaking Bitcoin Acquisitions
The fourth quarter of 2024 marked Strategy’s largest-ever increase in quarterly bitcoin holdings. The company acquired 218,887 bitcoins for $20.5 billion, bringing its total bitcoin holdings to approximately 471,107 BTC as of February 2025. This acquisition underscores Strategy’s commitment to building its Bitcoin treasury and leveraging the growing institutional and retail support for its strategic vision.
As of December 31, 2024, the carrying value of Strategy’s digital assets was $23.909 billion, with an original cost basis of $27.968 billion and a market value of $41.789 billion. This reflects an average cost per bitcoin of approximately $62,503 and a market price per bitcoin of $93,390. In January 2025, Strategy adopted ASU 2023-08, requiring it to measure its bitcoin holdings at fair value in its financial statements. As a result, the company recognized a cumulative-effect net increase of $12.745 billion to the opening balance of retained earnings.
Key Performance Metrics: BTC Yield, BTC Gain, and BTC $ Gain
Strategy introduced new key performance indicators (KPIs) to provide greater transparency into its Bitcoin strategy:
- BTC Yield: For 2024, Strategy achieved a BTC Yield of 74.3%, significantly exceeding its initial targets. The company aims for an annual BTC Yield of over 15% in 2025.
- BTC Gain and BTC $ Gain: In 2024, Strategy reported a BTC Gain of 140,538 and set a target of achieving an annual BTC $ Gain of $10 billion in 2025.
These KPIs are critical tools for assessing the performance of Strategy’s Bitcoin acquisition strategy, which it believes enhances shareholder value.
Capital Markets Activity and Funding Initiatives
To fund its aggressive Bitcoin acquisitions, Strategy executed several innovative capital-raising initiatives:
- At-the-Market Equity Offering Program: During Q4 2024, the company issued and sold 42,308,443 shares of its class A common stock, raising approximately $15.1 billion. Between January 1, 2025, and February 2, 2025, Strategy issued an additional 6,487,654 shares, generating $2.4 billion in net proceeds. Approximately $4.3 billion remains available under the program.
- Convertible Notes: In November 2024, Strategy issued $3.0 billion in aggregate principal amount of 0% Convertible Senior Notes due 2029, with an initial conversion price of $672.40 per share. Net proceeds totaled approximately $2.97 billion after fees.
- Perpetual Strike Preferred Stock: In January 2025, Strategy issued 7,300,000 shares of its 8.00% Series A Perpetual Strike Preferred Stock at a public offering price of $80.00 per share, raising approximately $563.4 million in net proceeds.
Additionally, Strategy announced the redemption of its 2027 Convertible Notes, totaling $1.05 billion, effective February 24, 2025. Holders have the option to convert their notes into shares of class A common stock at a conversion rate of 7.0234 shares per $1,000 principal amount.
Software Business Performance
Despite its focus on Bitcoin, Strategy continues to operate a robust software business. Key highlights from Q4 2024 include:
- Total Revenues: $120.7 million, a 3.0% decrease year-over-year.
- Subscription Services Revenues: $31.9 million, a 48.4% increase year-over-year.
- Gross Profit: $86.5 million, representing a gross margin of 71.7%, compared to $96.3 million and a 77.3% margin in Q4 2023.
- Operating Expenses: $1.103 billion, reflecting a significant increase primarily due to impairment losses on digital assets totaling $1.006 billion.
Strategy reported a net loss of $670.8 million, or $3.03 per share, for Q4 2024, compared to net income of $89.1 million, or $0.50 per share, in Q4 2023.
Rebranding and Strategic Vision
In August 2024, Strategy completed a 10-for-1 stock split, enhancing accessibility for retail investors. Additionally, the company increased its authorized shares of class A common stock from 330 million to 10.33 billion and preferred stock from 5 million to 1.005 billion, ensuring flexibility for future growth initiatives.
The rebranding to Strategy™ reflects the company’s evolution into a global leader in Bitcoin and AI innovation. By aligning these transformative technologies, Strategy aims to redefine how companies approach digital transformation and capital allocation.
Introducing the Strategy Dashboard
To enhance transparency, Strategy launched a dashboard on its website, providing real-time updates on key metrics such as:
- Market data for securities and bitcoin.
- BTC Yield, BTC Gain, and BTC $ Gain KPIs.
- Bitcoin purchases and holdings.
- Capital markets activity.
This tool ensures broad, non-exclusionary distribution of information, empowering investors and stakeholders with timely insights.
Transformative Growth in 2025
With its ambitious capital plan, innovative funding strategies, and focus on Bitcoin and AI, Strategy is well-positioned for transformative growth in 2025. The adoption of fair value accounting for bitcoin holdings will further enhance transparency, aligning financial reporting with the intrinsic value of its digital assets.
“2025 will take our evolution further,” said Andrew Kang, Chief Financial Officer. “By introducing the BTC $ Gain KPI and adopting fair value accounting, we are transforming our financial results to better reflect the value generation and profitability of our treasury operations.”
