MicroStrategy is Now “Strategy₿”
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MicroStrategy rebrands to focus on Bitcoin holdings and business intelligence. Q4 2024 loss driven by $1.01 billion impairment on Bitcoin holdings. Strategy₿ launches STRK stock with a fixed 8% dividend and Nasdaq listing. MicroStrategy has officially rebranded as Strategy₿, demonstrating its devotion to Bitcoin and its holdings. Announced February 5, the company unveiled a new logo featuring “₿” to solidify its focus on Bitcoin. However, this rebranding follows a challenging quarter, with the company reporting significant financial losses. Strategy₿’s Q4 2024 Financial Results The company’s Q4 2024 earnings report, released on February 5, disclosed a net loss of $670.8 million, or $3.03 per share. This marks a decline from the profit of $89.1 million, or 50 cents per share, reported during the same period the previous year. The loss was driven by a $1.01 billion charge on its Bitcoin holdings, an increase compared to the $39.2 million charge in Q4 2023. However, these impairment charges will no longer affect earnings, as the company plans to adopt new fair-value accounting rules in the first quarter of 2025. This change is expected to eliminate the need for such impairment accounting, changing the company’s quarterly results. Related: Bitcoin Bets Backfire? MicroStrategy Shares Down 46% STRK Stock and New Share Issuance As part of its rebranding, Michael Saylor’s Strategy₿ will have its convertible preferred stock, STRK, listed on Nasdaq starting February 6, 2025. STRK will offer upside exposure to MSTR with a fixed 8% dividend which will be convertible into MSTR common stock at a ratio of 10:1. Additionally, the company has issued 7,300,000 shares at $80.00 per share, raising $563.4 million in net proceeds. Related: Coinbase and MicroStrategy Stocks Soar as Bitcoin Breaks $88,000 The “Strategy₿” Shift: It’s All About Bitcoin Michael Saylor, founder and Executive Chairman, explained that the decision to simplify…
Filed under: News - @ February 6, 2025 8:17 am