MicroStrategy Rebrands and Accelerates Bitcoin Purchases in Q4 – A Game Changer!

"MicroStrategy Rebrands and Boosts Bitcoin Buying in Q4!"

Michael Saylor's MicroStrategy has acquired 218,887 bitcoins, nearing its $42 billion capital goal, while introducing new performance metrics for future growth.

Rachel Patel3 hours agoLast Update : 3 hours ago

MicroStrategy unveils new name, reports accelerated bitcoin purchases in fourth quarter

www.cnbc.com

Michael Saylor, chairman of MicroStrategy, announced the company’s accelerated bitcoin purchasing strategy during the Bitcoin 2024 conference in Nashville, Tennessee, on July 26, 2024. MicroStrategy, now rebranded as Strategy, reported that it has acquired a total of 471,107 bitcoins, representing about 2% of the total bitcoin supply, as part of its ongoing capital raising efforts.

6 Key Takeaways

Michael Saylor speaks at Bitcoin 2024 conference.
MicroStrategy acquires 218,887 bitcoins for $20.5 billion.
Company targets $42 billion in securities issuance.
BTC yield for 2024 was 74.3%.
Legacy software business reports $670.8 million loss.
New metrics introduced for bitcoin performance tracking.

Fast Answer: MicroStrategy, now called Strategy, has acquired 471,107 bitcoins, reaching nearly half of its $42 billion capital raising goal. The company reported a fourth-quarter loss in its legacy software business while focusing on enhancing shareholder value through its aggressive bitcoin buying strategy.

Strategy has made significant strides in its bitcoin acquisition, having purchased 218,887 bitcoins for $20.5 billion since the end of the third quarter. The firm aims to raise $42 billion in securities between 2025 and 2027, capitalizing on the recent surge in cryptocurrency prices. The company’s president and CEO, Phong Le, stated that they are significantly ahead of their initial timelines in achieving their capital plan.

In its latest financial update, Strategy reported a BTC yield of 74.3% for the year and introduced new metrics to measure its performance. These include BTC Gain, which tracks the number of bitcoins held at the beginning of a period multiplied by the BTC Yield, and BTC $Gain, which translates BTC Gain into dollar values based on market prices. For 2024, Strategy achieved a BTC Gain of 140,538 and is targeting a BTC $Gain of $10 billion for 2025.

Despite its aggressive bitcoin strategy, the company reported a fourth-quarter loss of $670.8 million in its legacy software business, down from earnings of $89.1 million a year prior. Revenue also dipped 3% to $120.7 million, attributed to declines in product support and other revenue streams, although subscription services and product licenses saw growth.

Notice: Canadian investors should be aware of the regulatory environment surrounding cryptocurrency investments, as it may differ significantly from U.S. regulations.

In summary, Strategy’s focus on bitcoin has positioned it as a leader in corporate cryptocurrency holdings, while its legacy software business continues to face challenges. The company’s ambitious plans and new performance metrics reflect its commitment to enhancing shareholder value in the evolving digital asset landscape.