Strategy Reports Q4 Loss Amid Bitcoin Impairment, Targets $10B Gain in 2025

Fresh off a corporate rebrand, Strategy (MSTR) reported a fourth-quarter net loss of $3.03 per share on Wednesday, swinging from a profit of $0.50 per share in the same quarter last year. The loss stemmed from an impairment charge on its 471,107 bitcoin (BTC) holdings, now valued at over $45 billion with BTC trading just above $97,000.

Despite the quarterly setback, Strategy remains committed to its bitcoin-first approach, setting an ambitious target of a $10 billion gain on its BTC holdings by the end of 2025.

The company’s eventful week included an upsized preferred stock offering and an official name change to Strategy, marking a full pivot from its legacy software business to a bitcoin-focused strategy.

Adding to the evolving landscape, the Financial Stability Accounting Board (FASB) has introduced a new fair value accounting standard for digital assets. While voluntary in 2024, the rule becomes mandatory starting Q1 2025, potentially impacting how companies report their crypto holdings.

Shares of Strategy dipped slightly in after-hours trading, following a 3% decline during regular market hours as bitcoin briefly dropped to the $97,000 level.