MicroStrategy (MSTR): Major Player in Bitcoin Investment

By Patricia Miller

Feb 07, 2025

2 min read

Strategy (formerly MicroStrategy) expands Bitcoin holdings, adopts fair value accounting, and sets a bold $10B BTC Gain target—what it means for retail investors.

Golden Bitcoins

#What You Need to Know

MicroStrategy, now rebranded as Strategy (Nasdaq: MSTR), announced its fourth-quarter 2024 financial results, highlighting a record-breaking increase in Bitcoin holdings and the introduction of new key performance indicators (KPIs) to assess its digital asset strategy.

Strategy remains the largest corporate holder of Bitcoin, reporting 471,107 BTC as of the end of 2024. The company acquired 218,887 BTC during the quarter, investing $20.5 billion since the end of Q3. It introduced new KPIs, including BTC Gain and BTC $ Gain, with an ambitious $10 billion BTC $ Gain target for 2025.

The company revised its BTC Yield target for 2025, lowering it to 15% after achieving 74.3% BTC Yield in 2024. This KPI measures the accretive impact of its Bitcoin acquisition strategy on shareholder value.

Despite its aggressive Bitcoin accumulation, Strategy posted a $670.8 million net loss for Q4, primarily due to a $1.006 billion impairment loss on its digital assets. Revenue for the quarter came in at $120.7 million, a slight 3% decline year-over-year. The company underwent a 10-for-1 stock split in August 2024, significantly increasing its stock’s liquidity. Additionally, it completed a $42 billion capital plan ahead of schedule and raised $584 million through the launch of its STRK convertible preferred offering in Q1 2025.

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#Why This Is Important for Retail Investors

  • Increased Accessibility: The 10-for-1 stock split makes shares more affordable, allowing more retail investors to participate.

  • Bitcoin Exposure Without Direct Ownership: Strategy’s massive Bitcoin holdings provide retail investors a way to gain exposure to BTC without the complexities of direct ownership.

  • Enhanced Transparency and Valuation: The shift to fair value accounting and introduction of BTC Gain and BTC $ Gain KPIs offer greater clarity on Bitcoin’s impact on the company’s financials.

  • Strong Institutional Backing and Capital Raising: Billions raised through stock offerings and convertible notes indicate high investor confidence, potentially benefiting retail shareholders.

  • Potential for Growth and Returns: Strategy’s $10 billion BTC $ Gain target for 2025 underscores a focus on leveraging Bitcoin’s appreciation to drive shareholder value.

#Relevant ETFs

  • Grayscale Bitcoin Trust (GBTC)

  • Amplify Transformational Data Sharing ETF (BLOK)

  • ProShares Bitcoin Strategy ETF (BITO)

  • Invesco Cryptocurrency ETF

  • Bitwise 10 Crypto Index Fund (BITW)

  • First Trust Index Innovative Transaction & Process ETF (LEGR)

Learn How to Invest in Crypto

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Important Notice And Disclaimer

This article does not provide any financial advice and is not a recommendation to deal in any securities or product. Investments may fall in value and an investor may lose some or all of their investment. Past performance is not an indicator of future performance.

Patricia Miller does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the above article.

Patricia Miller has not been paid to produce this piece by the company or companies mentioned above.

Digitonic Ltd, the owner of ValueTheMarkets.com, does not hold a position or positions in the stock(s) and/or financial instrument(s) mentioned in the above article.

Digitonic Ltd, the owner of ValueTheMarkets.com, has not been paid for the production of this piece by the company or companies mentioned above.