MicroStrategy (Strategy) now holds 471,107 BTC as Q4 loss hits $670m

Overview

MicroStrategy, now rebranded as Strategy, reinforced its position as the largest corporate holder of Bitcoin, reporting record-breaking acquisitions and a strong commitment to Bitcoin and AI innovation. The company now holds 471,107 BTC, significantly increasing its holdings in Q4 2024.

CEO Phong Le emphasized the company’s aggressive execution on its $42bn capital plan, stating: “Strategy is at the cutting edge of innovation, championing the two most transformative technologies of the 21st century: Bitcoin and AI. Looking ahead to the rest of 2025, we are well-positioned to further enhance shareholder value by leveraging the strong support from institutional and retail investors for our strategic plan.”

Q4 2024 vs. Q4 2023:

• Total revenues were $120.7m (-3% YoY), impacted by lower software licensing revenue.
  • Subscription services revenues were $31.9m (+48.4% vs. Q4 2023).
  
  
  • Product licenses and subscription services revenues were $47.2m (+18.3% YoY).
  
  
  • Product support revenues were $58.4m (-10.8% YoY).
  
  
  • Other services revenues were $15.1m (-20.8% YoY).
• Operating expenses have grown abnormally large to a value of $1.1bn (+693% YoY), driven by $1.0bn in digital asset impairment losses.
• Gross profit was $86.5m (-10% YoY), representing a 71.7% gross margin (compared to a gross margin of 77.3% in Q4 2023).
• Net loss was $670.8m, compared to a $89.1m net income in Q4 2023.
• Diluted EPS recorded a value of $(3.03), down from $0.50 per share in Q4 2023.
• In Q4, the company made its largest-ever quarterly purchase, adding 218,887 BTC for $20.5bn.
• As of December 31, 2024, the company had cash and cash equivalents of $38.1m (-19% YoY). The carrying value of the company’s digital assets (comprised of approximately 447,470 bitcoins) was $23.9bn.
• Regarding stock issuances, the company raised $15.1bn through 42.3m shares in Q4, with an additional $2.4bn raised in early 2025.

Full-Year 2024 highlights:

• Total revenues decreased compared to last year, to a value of $463.5m (-7% YoY).
  • Subscription services revenues were $106.8m (+32% YoY).
  
  
  • Product licenses and subscription services revenues were $155.3m (flat YoY).
  
  
  • Product support revenues were $243.8m (-8% YoY).
  
  
  • Other services revenues were $64.3m (-15% YoY).
• Operating expenses grew at an accelerated pace, reaching a value of $2.2bn (+436% YoY).
• Gross profit recorded a value of $334m (-14% vs. 2023), while net loss was $1.17bn, compared to a $429.1m net income for the FY2023.
• Diluted EPS was $(6.06), a marked decrease from a value of $3.14 in 2023.
• BTC yield KPI was 74.3% in FY 2024, with a revised 15% annual target for 2025.
• For the full year 2024, the company’s BTC gain was 140,538.

For 2025 outlook, Strategy anticipates continued growth in Bitcoin holdings and an increased focus on AI-driven enterprise solutions. The company aims for a minimum BTC yield of 15% and has set a $10bn BTC gain KPI as part of its strategic financial targets. To enhance financial transparency, Strategy will fully adopt fair value accounting for Bitcoin holdings, providing greater clarity in financial reporting. Additionally, the company plans to expand its AI-powered business intelligence and analytics platforms, diversifying revenue streams beyond digital assets. Strategy also remains committed to leveraging capital markets for Bitcoin acquisitions and shareholder value creation, reinforcing its position at the intersection of AI, enterprise analytics, and digital assets.

The announcement of the publication of the results was not viewed with good feelings by investors, MSTR shares having a trading price that gradually decreased, by the time of writing this news, decreasing by over 4%.

Author: Ionuț-Adrian Lazar