Strategy Doubles Down on Bitcoin, Aims to Double Holdings by 2025

After rebranding, Strategy outlines its 2025 targets, doubling down on bitcoin.

Strategy, formerly known as MicroStrategy, has rebranded and detailed its plans for the next few years. The company, now a Nasdaq 100 stock, is fully committed to bitcoin, with a logo featuring a bitcoin "B" and a pledge to continue raising funds to purchase more BTC.

As of February 2, Strategy held 471,107 BTC, worth approximately $46 billion at the time. The company acquired 258,320 BTC for $22.1 billion in 2024, with an average price of $85,447 per BTC.

On its earnings call, Strategy CEO Phong Le reiterated the company's 21-21 plan, which involves raising $21 billion in equity and $21 billion from fixed income securities between 2025 and 2027. The company has made progress faster than anticipated due to favorable market dynamics.

In the fourth quarter, Strategy raised $15 billion through equity issuances and $3 billion via convertible debt. This is a significant increase from the $10 billion raised over the previous 17 quarters. The company plans to shift its focus to fixed income issuances in 2025, with a long-term leverage target of 20-30% of its BTC holding value.

In a research note, Benchmark's Mark Palmer pointed out that Strategy has increased its 2025 BTC yield target to at least 15%, up from the 6-10% figure mentioned in the previous earnings call. Palmer also noted that the company's $10 billion BTC dollar gain target implies it will continue to aggressively raise capital to fund BTC purchases.

Strategy has paused its BTC-buying spree but remains committed to its treasury operations. The company's stock, trading around $326 at 1:30 pm ET, has a price target of $650, according to Palmer.

In other news, Strategy has launched a merchandise store for apparel. The company also offers newsletters, including Empire, Forward Guidance, 0xResearch, and Lightspeed, covering various aspects