Strategy Reports Q4 Earnings: Bitcoin Holdings Grow Amid Revenue Shortfall

Strategy, formerly known as MicroStrategy, released its fourth-quarter earnings report, revealing a mixed financial performance marked by a revenue miss but continued expansion of its Bitcoin holdings.

The company, which recently rebranded to emphasize its focus on digital assets and artificial intelligence, highlighted its strategic financial moves and capital market activities as it navigates a volatile investment landscape. It continues to stack massive amounts of Bitcoin.

Revenue Performance and Financial Overview

Strategy reported total revenue of $120.7 million for Q4, falling short of analyst expectations of $123.25 million and marking a 3% decline year-over-year. The company also posted an adjusted loss of $3.20 per share. While revenue from subscription services increased by 48.4% year-over-year, other segments saw declines, with product support revenue dropping 10.8% and other services revenue decreasing by 20.8%.

Key Financial Metrics

Despite the revenue miss, Strategy remains financially positioned to execute its long-term plans, ending the quarter with $38.1 million in cash and cash equivalents. The company’s leadership reaffirmed its commitment to digital transformation and capital efficiency, emphasizing ongoing efforts to leverage both institutional and retail investor support for its business strategy.

Bitcoin Strategy & Capital Market Initiatives

Strategy pursued aggressive capital market activities, raising $18.8 billion through equity offerings and issuing multiple tranches of convertible notes. The company outlined plans to further optimize its capital structure, including continued issuance of innovative fixed-income securities to enhance shareholder value.

Bitcoin Strategy and Capital Market Initiatives

The company made significant strides in expanding its Bitcoin portfolio, acquiring 218,887 Bitcoin in Q4 at a total cost of $20.5 billion. By the end of the quarter, Strategy’s total Bitcoin holdings stood at 447,470, a number that had increased to 471,107 as of early February. With an annual Bitcoin yield of 74.3% in 2024, the company revised its 2025 yield target to a minimum of 15% and introduced a new metric, BTC $ Gain, with an ambitious target of $10 billion for the year.

Strategy also pursued aggressive capital market activities, raising $18.8 billion through equity offerings and issuing multiple tranches of convertible notes. The company outlined plans to further optimize its capital structure, including continued issuance of innovative fixed-income securities to enhance shareholder value.

Looking ahead, Strategy’s leadership expressed confidence in its Bitcoin-centric approach, citing favorable regulatory trends and increasing institutional interest in digital assets. As the company transitions to fair value accounting for Bitcoin holdings in Q1 2025, it anticipates improved financial transparency and enhanced market positioning within the rapidly evolving digital economy.