The post MicroStrategy rebrands to ‘Strategy’ after posting a $670M Q4 Bitcoin impairment loss appeared on BitcoinEthereumNews.com.

MicroStrategy, now known as ‘Strategy,’ reported a staggering $670M impairment loss in Q4, mainly from Bitcoin. Yet, despite the hit, it continues accumulating BTC, believing in its long-term value. MicroStrategy has officially rebranded as Strategy. Announced on Feb. 5, the rebranding comes with a new logo featuring a stylized “B,” reflecting its identity as the world’s largest corporate holder of Bitcoin.  The move coincides with the company’s fourth consecutive quarterly loss and an even greater focus on Bitcoin (BTC) accumulation. The latest earnings report, also released on Feb. 5, revealed a net loss of $670.8 million for the fourth quarter of 2024, translating to $3.03 per share. A year earlier, the company had reported a profit of $89.1 million, or 50 cents per share.  The losses were largely driven by a $1.01 billion impairment charge on its Bitcoin holdings, a sharp increase from the $39.2 million recorded in the same quarter last year.  However, this will be the last time such impairment charges impact earnings, as the company is set to adopt new fair-value accounting rules starting in the first quarter of 2025.  The new approach, introduced by the Financial Stability Accounting Board, will allow Strategy to reflect Bitcoin’s actual market value in its financial statements, potentially reducing volatility in reported earnings. Despite these financial setbacks, Strategy continues to aggressively expand its Bitcoin holdings. In the fourth quarter alone, the company made its largest-ever Bitcoin purchase, acquiring 218,887 BTC for $20.5 billion.  As of this writing, Strategy holds 471,107 BTC, valued at approximately $46 billion. The latest addition to its treasury came on Jan. 27, when it purchased 10,107 BTC worth around $1.1 billion. Strategy’s relentless Bitcoin buying spree has helped its stock rally over the past year, with shares climbing nearly five-fold in 2024 and earning the company a…

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Filed under: News - @ February 6, 2025 4:22 am