MicroStrategy Unveils New Name, Reports Accelerated Bitcoin Purchases in Fourth Quarter

MicroStrategy, the world's largest corporate holder of Bitcoin, has unveiled a new name and reported accelerated Bitcoin purchases in the fourth quarter of 2024. The company, now known as Strategy, has rebranded to reflect its commitment to Bitcoin and artificial intelligence, two of the most transformative technologies of the 21st century.

Strategy's new identity includes a stylized "B" logo and an orange color scheme, which are closely tied to Bitcoin's imagery and brand colors. The rebranding also includes a new mobile AI assistant called "Auto," which is part of the wider Strategy One platform, aimed at business leaders and mobile users seeking streamlined answers.

The company's accelerated Bitcoin purchases in the fourth quarter were driven by several key factors:

1. Capital Plan Progress: Strategy has completed $20 billion of its $42 billion capital plan, significantly ahead of initial timelines. This capital plan is a key driver for the company's Bitcoin acquisition strategy.
2. Strong Investor Support: The company has received strong support from both institutional and retail investors for its strategic plan, which includes aggressive Bitcoin purchases. This support has enabled Strategy to raise additional capital through offerings like the STRK convertible preferred offering.
3. Bitcoin Market Performance: The Bitcoin market has been volatile but generally bullish during this period. In the fourth quarter, Strategy acquired 218,887 bitcoins for $20.5 billion, reflecting an average cost of approximately $93,390 per bitcoin. This acquisition was made despite the market experiencing a temporary dip to around $91,000.
4. Fair Value Accounting Adoption: Strategy adopted ASU 2023-08 in January 2025, which requires it to measure its bitcoin holdings at fair value in its statement of financial position. This change in accounting policy may have encouraged the company to increase its Bitcoin holdings, as it will now recognize gains and losses from changes in the fair value of its bitcoin in net income each reporting period.

Strategy's adoption of fair value accounting for Bitcoin holdings also impacts its financial reporting and shareholder value. By measuring Bitcoin holdings at fair value, Strategy brings more transparency to the value generation and profitability of its treasury operations. This allows shareholders to better understand the performance of the company's Bitcoin strategy. The adoption of fair value accounting also results in gains and losses from changes in the fair value of Bitcoin being recognized in net income each reporting period, providing a more accurate reflection of the company's financial performance.

In conclusion, MicroStrategy's rebranding to Strategy reflects the company's commitment to Bitcoin and artificial intelligence, two of the most transformative technologies of the 21st century. The company's accelerated Bitcoin purchases in the fourth quarter were driven by its capital plan progress, strong investor support, Bitcoin market performance, and the adoption of fair value accounting. The adoption of fair value accounting also enhances the transparency of Strategy's financial reporting and provides a more accurate reflection of its financial performance, ultimately benefiting shareholder value.