Strategy expands Bitcoin holdings with record acquisition despite Q4 loss
Strategy (formerly known as MicroStrategy) has reported its largest quarterly Bitcoin acquisition to date, marking a significant expansion of its holdings in the fourth quarter of 2024.
In the last quarter of 2024, the firm purchased 218,887 BTC, bringing its total holdings to 447,470 BTC as of Dec. 31. The company has made additional Bitcoin acquisitions this year, and it currently holds 471,107 BTC, valued at approximately $46 billion.
Strategy explained that its aggressive accumulation aligns with its “21/21 Plan,” a funding strategy aimed at securing $42 billion over three years. The plan aims to raise $21 billion in equity and $21 billion in fixed-income securities to support continuous Bitcoin acquisitions.
CEO Phong Le pointed out that the company has already secured $20 billion of its planned funding—well ahead of its original timeline. He also said that strong investor backing positions Strategy to further enhance shareholder value throughout 2025.
He stated:
“We have completed $20 billion of our $42 billion capital plan, significantly ahead of our initial timelines, while leading the digital transformation of capital in the financial markets.”
Measuring Bitcoin performance
Strategy has introduced several key performance indicators (KPIs) to track its Bitcoin strategy more effectively.
CFO Andrew Kang explained that these metrics will provide better and deeper insights into the company’s financial standing and reinforce its commitment to transparency.
One of these metrics, BTC Yield, reflects the percentage change in Bitcoin holdings relative to outstanding shares. For 2024, the company reported a BTC Yield of 74.3%. The company said it is revising its 2025 target to achieve an annual BTC Yield of more than 15%.
The company has also rolled out BTC Gain and BTC $ Gain metrics to evaluate its Bitcoin-related financial performance.
BTC Gain reflects the increase in Bitcoin holdings over a given period, while BTC $ Gain translates that growth into dollar terms. For 2024, the firm recorded a BTC Gain of 140,538 BTC and has set a $10 billion BTC $ Gain target for 2025.
Financial impact
Despite its expanding Bitcoin portfolio, Strategy reported a net loss of $670.8 million in Q4 2024, translating to $3.03 per share.
This was largely due to a $1.01 billion impairment charge on Bitcoin holdings—a steep rise from the $39.2 million recorded a year earlier.
However, upcoming shifts in accounting standards are expected to stabilize its financial reporting.
Starting in Q1 2025, Strategy will adopt fair-value accounting standards set by the Financial Stability Accounting Board (FASB). The change requires Bitcoin holdings to be measured at fair value, with gains and losses reflected in net income each reporting period.
Mentioned in this article
