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Strategy Expands Bitcoin Stash Despite $670 Million Quarterly Loss
Key Takeaways
- Strategy posted a $670.8 million loss but kept expanding its Bitcoin holdings, adding 218,887 BTC in Q4 2024;
- The company’s spending surged 700% due to its $42 billion "21/21 Plan" for Bitcoin investments, with $20 billion already deployed;
- New performance metrics—BTC Yield, BTC Gain, and BTC $ Gain—were introduced to track Bitcoin holdings and financial health.
Recently rebranded from MicroStrategy, the company now known as Strategy reported a $670.8 million net loss in the last quarter of the year.
Despite this, the company continued its aggressive Bitcoin
According to Strategy's Q4 2024 Financial Results, the company generated $120.7 million in revenue for the quarter, which reflects a 3% drop from the same period last year. This figure also came in about $2 million below analyst predictions.
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The company also introduced new performance measures. Its "BTC Yield" metric, which compares Bitcoin holdings to outstanding diluted shares, stood at 74.3% in 2024. However, it plans to lower this target to 15% for 2025.
Additionally, Strategy introduced "BTC Gain" and "BTC $ Gain" to better assess its financial position. BTC Gain measures the increase in Bitcoin holdings based on past performance, while BTC $ Gain reflects the dollar value of that change.
Meanwhile, the company’s spending rose, reaching $1.1 billion—a nearly 700% increase from the previous year. This surge was tied to its "21/21 Plan," which aims to raise $42 billion over three years to fund further Bitcoin purchases through equity and fixed-income investments.
Strategy has completed $20 billion of this plan, mostly using convertible debt and other financing methods to fuel its Bitcoin purchases. CEO Phong Le stated that the company is progressing ahead of schedule and believes strong backing from institutional and retail investors will help further its goals.
Meanwhile, Tesla recently released its fourth-quarter and fiscal year 2024 update, revealing a surprise in its Bitcoin holdings. What is it? Read the full story.