MicroStrategy, the Bitcoin whale which rebranded to Strategy just yesterday, ended 2024 with its Bitcoin reserves worth $23.9 billion, according to the company’s latest financial report that was released yesterday.
Despite reporting a $670 million net loss for Q4, the company, led by CEO Phong Le, shared that they’ve acquired 447,470 bitcoins to date. Strategy said in the earnings report that the recent pause in new Bitcoin purchases has little to do with their commitment to the OG crypto.
Le explained the company’s transformation during the earnings announcement, saying, “We are now Strategy—a name that speaks to our global mission. Bitcoin and AI are the two most transformative technologies of the 21st century, and we are leading that charge.”
In Q4 alone, Strategy bought 218,887 bitcoins for $20.5 billion, setting a company record for quarterly acquisitions.
On August 7, 2024, Strategy executed a 10-for-1 stock split for both Class A and Class B shares, which expanded the pool of potential investors by lowering the entry price.
According to the earnings report, Strategy issued over 42.3 million shares of Class A stock between October and December 2024 for $15.1 billion, then 6.5 million more shares were sold between January 1 and February 2 for $2.4 billion.
Even after these, Strategy still had $4.3 billion in Class A stock available for future offerings. CFO Andrew Kang said that Strategy’s capital plan is firing on all cylinders. “We’ve raised $20 billion out of our $42 billion target—well ahead of schedule,” he confirmed.
The company also launched its first convertible preferred stock offering, backed by both institutional and retail investors. This raised $584 million early in 2025.
But that’s not all. In November 2024, Strategy issued $3 billion in 0% Convertible Senior Notes, maturing in 2029. Investors agreed to a conversion price of $672.40 per share, locking in future stock at what they bet will be a bargain.
After underwriting fees and commissions, Strategy pocketed $2.97 billion from the issuance. In January, the company introduced another financial tool: Series A Perpetual Strike Preferred Stock. These 7.3 million shares, priced at $80 each, brought in $563.4 million after expenses. They carry an 8% annual dividend and a $100 liquidation preference. Clearly, Strategy knows how to work the capital markets.
Strategy’s Bitcoin profits hit $10 billion
Strategy’s BTC Yield—the rate of return on their Bitcoin holdings—hit 74.3% in 2024. For 2025, they’ve set a lower target of 15%, likely due to a move toward more measured growth, according to the earnings report. The company also reported a BTC Gain of 140,538 for 2024, with a $10 billion BTC $ Gain target lined up for this year.
In line with their long-term mission, Strategy announced they would adopt fair value accounting for Bitcoin starting in 2025. This means quarterly financials will now reflect the real-time market value of their holdings.
Bitcoin price fluctuations will directly affect reported earnings, both positively and negatively. The new accounting rule, ASU 2023-08, requires Strategy to apply a $12.745 billion increase to retained earnings as a cumulative adjustment.
As of December 31, 2024, Strategy’s digital assets carried a book value of $23.9 billion, based on an average purchase price of $62,503 per bitcoin. But the market value stood at a whopping $41.8 billion, driven by Bitcoin’s $93,390 price at year-end.
Convertible notes redemption and share increases
Another important decision in Strategy’s restructuring is the redemption of 0% Convertible Senior Notes due 2027. On January 24, Strategy reported that it issued a notice to redeem all $1.05 billion of these notes by February 24.
Holders have until February 20 to convert their notes into Class A shares at a rate of 7.0234 shares per $1,000 of principal. That works out to a conversion price of $142.38 per share. If any noteholders choose to convert, Strategy says it will pay cash for fractional shares but issue stock for the bulk of the obligation.
In anticipation, Strategy’s shareholders approved amendments to the company’s charter in January 2025. They increased the authorized number of Class A shares from 330 million to 10.33 billion and preferred stock authorization also saw a massive jump, from 5 million to 1.005 billion shares, according to the earnings report.
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