MicroStrategy, the company formerly known as MicroStrategy, reported a Q4 net loss of $3.03 per share, compared to income of $0.50 per share in the same period last year. The loss was due to an impairment charge on its 471,107 token bitcoin (BTC) holdings, which are now worth over $45 billion at current prices.
The company has chosen not to adopt a new FASB rule for fair value accounting on its digital asset holdings until January 2025. However, it plans to comply with the rule starting from Q1 2025.
For 2025, Strategy aims to generate a dollar gain of $10 billion on its bitcoin holdings. The company’s shares have dropped marginally in after-hours trading, falling about 3% in regular trade as bitcoin prices dipped below $97,000.
The Financial Stability Accounting Board (FASB) has implemented new fair value accounting rules for corporates holding digital assets, which will be mandatory starting from January 2025. The company’s name change to Strategy reflects its primary focus on bitcoin over software development.
Source: https://www.coindesk.com/markets/2025/02/05/microstrategy-reports-q4-loss-bitcoin-holdings-remain-at-471-107