MicroStrategy Misses Q4 Estimates but Doubles Down on Bitcoin Accumulation

MicroStrategy (NASDAQ:MSTR) fell short of Wall Street expectations in its fourth-quarter earnings report, with revenue declining and losses widening more than anticipated. However, the company remained steadfast in its aggressive Bitcoin accumulation strategy, which it continues to position as its primary value driver.

For the quarter, Strategy reported revenue of $120.7 million, missing the analyst consensus estimate of $123 million. The company also posted an adjusted loss per share of -$3.20, a far steeper loss than the expected -$0.12 per share. Despite the earnings miss, shares remained largely unchanged in after-hours trading.

While its core business results disappointed, Strategy significantly expanded its Bitcoin holdings in Q4, acquiring 218,887 bitcoins for $20.5 billion—its largest quarterly increase ever. As of December 31, 2024, the company held approximately 447,470 bitcoins, valued at $41.789 billion.

To support its aggressive Bitcoin accumulation, Strategy raised substantial capital during the quarter, securing $15.1 billion through its at-the-market equity program and an additional $3 billion via convertible notes issued in November.

Looking ahead, the company will adopt fair value accounting for its Bitcoin holdings starting in Q1 2025, aiming to provide greater transparency in its treasury operations. Strategy remains committed to its Bitcoin-centric financial model, emphasizing digital asset accumulation over traditional revenue growth as its primary focus.