Strategy Boosts Bitcoin Holdings Despite Quarterly Loss

Strategy Shifts Focus to Fixed-Income as Bitcoin Bet Grows

Strategy, previously known as MicroStrategy and founded by Michael Saylor, has become one of the biggest beneficiaries of Bitcoin’s growing popularity. Its stock surged nearly fivefold last year, earning the company a place in the Nasdaq 100 index in December. However, on Wednesday, Strategy reported its fourth consecutive quarterly loss due to an impairment charge on its cryptocurrency holdings.

The company started accumulating Bitcoin in 2020 as its software business faced declining revenue. In 2023, Strategy announced a plan to raise $42 billion over three years to acquire more Bitcoin. So far, it has secured $20 billion and, as of February 2, held approximately 471,107 bitcoins valued at $46 billion.

During the last quarter, Strategy purchased 218,887 bitcoins for $20.5 billion, marking its largest-ever quarterly acquisition. This aggressive accumulation has fueled a significant rally in Strategy’s stock over the past year, reinforcing its status as a major beneficiary of Bitcoin’s surging demand.

(Strategy’s Share Price Daily Chart, Source: Trading View)

Looking ahead, Strategy is shifting its focus toward fixed-income issuance, including convertible bonds and preferred stock, CEO Phong Le stated during a post-earnings call. The company reported a net loss of $670.8 million, or $3.03 per share, for the quarter ending December 31, compared to a profit of $89.1 million, or 50 cents per share, in the same period the previous year.

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