Catenaa, Thursday, February 06, 2025 – MicroStrategy has rebranded as “Strategy” after posting a $143 million net loss in Q4 and a $139 million loss for 2024, reflecting its dual focus on Bitcoin and artificial intelligence.1
The Q4 Financial Report can be found here.
Strategy reported total revenue of $120.7 million in the fourth quarter of 2024, marking a 3% decline from the same period last year. Subscription services revenue rose 48.4% year-over-year to $31.9 million. Product licenses and subscription services revenue grew 18.3% to $47.2 million. However, product support revenue fell 10.8% to $58.4 million, while other services revenue dropped 20.8% to $15.1 million.
Gross profit for the quarter was $86.5 million, reflecting a 71.7% gross margin, down from $96.3 million and a 77.3% margin in the fourth quarter of 2023.
Operating expenses surged 693.2% year-over-year to $1.103 billion, driven primarily by impairment losses on the company’s digital assets, which totaled $1.006 billion, up significantly from $39.2 million a year earlier.
The company reported a loss from operations of $1.016 billion, compared to $42.8 million in the fourth quarter of 2023. Net loss for the quarter was $670.8 million, or $3.03 per diluted share, reversing a net income of $89.1 million, or $0.50 per diluted share, in the prior-year quarter.
As of Dec. 31, 2024, Strategy held $38.1 million in cash and cash equivalents, down from $46.8 million at the end of 2023, reflecting a decline of $8.7 million.
The company’s new identity features Bitcoin-inspired orange branding and a redesigned logo. “Strategy is innovating in the two most transformative technologies of the 21st century,” CEO Phong Le said Tuesday.
In Q4 2024, Strategy acquired 218,887 BTC worth $20.5 billion, pushing its total holdings to 471,107 BTC. The company ramped up purchases after Donald Trump’s re-election, reinforcing its commitment to Bitcoin.
To finance acquisitions, Strategy raised $15.1 billion through stock sales in Q4, with an additional $2.4 billion raised year-to-date. Despite a 3% drop in revenue to $120.7 million, the firm aims for a $10 billion BTC gain in 2025 with a 15% yield target.
However, its aggressive Bitcoin strategy has led to steep financial losses. The company posted a $143 million Q4 net loss and a $139 million annual loss for 2024, largely due to stock dilution and operational costs.
- businesswire.com: https://www.businesswire.com/news/home/20250205209141/en/Strategy-Announces-Fourth-Quarter-2024-Financial-Results-Holds-471107-BTC[↩]
