Bitcoin play MicroStrategy announced a rebrand and new company name ahead of its Q4 earnings miss late Wednesday. The software services provider and corporate bitcoin treasury has been on a cryptocurrency buying spree and recently announced plans to raise even more funding.
MicroStrategy on Wednesday announced it is now operating under the name Strategy, and will continue to trade under the ticker MSTR. The company said the brand simplification is intended to reflect its focus on bitcoin and artificial intelligence.
Strategy reported a loss of $3.03 per share, compared to earnings of 50 cents last year. Revenue declined 3% to $120.7 million.
Analysts polled by FactSet expected a loss of 9 cents per share on $122.4 million in revenue.
Subscription services revenue tumbled 48%. The company's product licenses and subscription services revenue rose 18.3%.
CFO Andrew Kang noted that Strategy raised $584 million from launching its STRK convertible preferred offering. The company also completed its largest-ever increase in quarterly bitcoin holdings, adding 218,887 BTC since the end of Q3.
Strategy expects to achieve a bitcoin yield of 15% for 2025, with an annual gain of $10 billion.
Bitcoin Buying Spree
Strategy purchased approximately $20.4 billion in bitcoin over a 12-week period from Nov. 11 to Jan. 27, according to SEC filings from the company. As of Feb. 2, Strategy holds 471,107 bitcoin acquired for about $30.4 billion, at an average of $64,511 bitcoin, Chairman Michael Saylor said online. The company did not purchase any additional bitcoin for the week ending Feb. 3.
The purchases are part of a larger capital strategy to buy $42 billion in bitcoin over the next three years. Strategy in October filed to raise $21 billion of equity and $21 billion of fixed income securities, called its "21/21 Plan."
Elsewhere, Strategy at the end of January filed to raise about $563.4 million to buy more bitcoin in a perpetual strike preferred stock offering. The company plans to offer 7.3 million shares of 8% perpetual strike preferred stock at a price of $80 per share, which be issued under the ticker STRK on the Nasdaq on Feb. 5.
The preferred STRK stock will have an 8% cumulative dividend per year, according to the company.
Bitcoin traded near $97,000 Thursday after President Trump's tariffs against Mexico and Canada were delayed for at least a month. The 10% tariff against China remains in effect. Bitcoin on Sunday tumbled around $92,000 after the announcement the Trump tariffs against all three trading partners would take effect on Tuesday. The cryptocurrency traded around $105,000 on Friday.
Digital asset prices have broadly rallied since November in anticipation of a crypto-friendly administration. Trump has already issued a number of crypto-related executive orders, including launching a crypto task force and exploring the creation of a national digital asset stockpile.
Bitcoin on Jan. 20 hit a record high above $109,000 but has swung around its $100,000 level since.
Strategy Stock
Strategy stock skidded 3.3% Thursday, matching its Wednesday decline and retreating further from its 21-day and 50-day lines.
MSTR stock hit a record 543 on Nov. 21 but reversed to close 16.2% lower on the day in heavy volume.
Strategy stock is up more than 12% so far this year.
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