- MicroStrategy, now rebranded as âStrategy,â has dubbed itself the first âBitcoin Treasury Companyâ with 471K BTC in its stash.
- It is a risky bet that could pay off big if Bitcoin continues its bullish run.
Bitcoin [BTC] and MicroStrategy [MSTR] have become a power duo â one canât thrive without the other. But what happens if either one falls apart?
Strategyâs Q4 report under the spotlight
MicroStrategy rebranded as âStrategyâ ahead of its Q4 earnings report, dubbing itself the first âBitcoin Treasury Company.â The name seems fitting with 471,107 BTC in its stash, including a whopping 194,180 bought in Q4 alone.
Q4 was a huge bullish phase for Bitcoin, with billions flowing in during the election. MicroStrategy didnât waste the opportunity, making three massive Bitcoin buys costing $11.5 billion in just three transactions.
The company has released its Q4 financials, revealing a 74.3% BTC yield for 2024, all from its 447,470 BTC stashes, with an average cost per Bitcoin of $62,503.
However, thatâs one part of the story. MicroStrategyâs expenses shot up to $1.103 billion, mostly due to a $1.006 billion loss on their digital assets, resulting in a net loss of $670.8 million or $3.03 per share.
Source: Strategy
Bitcoinâs sudden dip from $108K to $92K â triggered by the Fedâs cautious stance on interest rates â cost MicroStrategy billions.
Its gross profit took a hit, dropping to $86.5 million from $96.3 million last year.
What does this mean for Bitcoin and Microstrategyâ future?
MicroStrategy and Bitcoin are now inseparable, but Bitcoinâs performance is crucial. With 2025 looking volatile, the ongoing trade war might just be the beginning.
In such a climate, predicting Bitcoinâs next top or bottom is anyoneâs guess, leaving MicroStrategy in a tricky spot. The chances of two rate cuts this year are shrinking fast.
Despite MicroStrategyâs $2.543 billion Bitcoin buys in January, Bitcoinâs price has only risen 4% since the start of the year, even dipping below $93K twice.
Still, MicroStrategy is aiming high, targeting a $10 billion BTC gain for 2025âa significant jump from the 140,538 BTC gain in 2024.
However, its stock has taken a hit, with a 15.26% decline in market cap from its all-time high of $8.71 trillion in mid-December last year, just before the FOMC meeting.
Source: TradingView (MSTR)
Read Bitcoinâs [BTC] Price Prediction 2025-26
As MicroStrategy turns to debt for future Bitcoin buys, the tough economy, unpredictable stock prices, and mounting losses put the company at risk.
If things donât go as planned, it might feel the impact first, putting Bitcoinâs rally in serious jeopardy.
