The Real Strategy | MicroStrategy’s Q4 Earnings Report

MSTR is up 300% since our first signal so let’s see what Michael Saylor is cooking!

MicroStrategy just released its Q4 earnings, and there’s a lot to unpack!
So, let’s skip the small talk and dive right in. Ready? LFG!

1/ MicroStrategy is now ‘Strategy’

While the company’s stock ticker (MSTR) remains unchanged, it has officially rebranded to ‘Strategy’ or ‘Strategy₿’ if you’re grabbing the merch.

2/ Adoption of FASB’s ‘Fair Value’ Accounting in Q1 2025

A major shift in Bitcoin accounting rules is here! The Financial Accounting Standards Board (FASB) has introduced a new policy that transforms how Strategy reports its Bitcoin holdings.

Before: Bitcoin was recorded at its lowest value since purchase, even if its market price was much higher.

Now: Bitcoin will be reported at its fair market value.

Impact: This will significantly improve Strategy’s balance sheet. Plus, it could encourage more corporations to adopt Bitcoin as a reserve asset.

Michael Saylor: Fair Value Accounting for Bitcoin has been officially adopted for fiscal years beginning after Dec 15, 2024. This update will drive corporate Bitcoin adoption worldwide.

3/ Strategy’s Bitcoin Yield Hits 74.3% in 2024

Wait, Bitcoin doesn’t generate yield, right? So what does this mean? It represents the amount of Bitcoin held per MSTR share. A rise in Bitcoin yield means each share now corresponds to more Bitcoin than before. This happens because Strategy takes on debt to acquire more Bitcoin.

Michael Saylor: MSTR acquired 258,320 BTC for 22.07B (~$85,450/BTC) in 2024, achieving a 74.3% Bitcoin yield. We started the year with 189,150 BTC and gained 140,630 BTC (averaging 385 BTC per day). At 100K/BTC, this equates to 14.06B in shareholder value creation—38.5M per day

4/ Share Dilution Is Underway

That Bitcoin yield? It may take a short term hit. In December, Strategy approved the issuance of a significantly higher number of shares about 30 times more than before. This dilution is already in motion and will continue over time.

Short term effect: The Bitcoin per share ratio may drop, reducing yield.

Long term plan: The proceeds from new share sales will be used to buy more Bitcoin, potentially boosting yield again (depending on Bitcoin’s purchase price and the debt Strategy takes on).

So far, shareholders seem unbothered by the dilution news.

5/ STRK Launch on Nasdaq

Alongside the share dilution, Strategy is rolling out STRK on Nasdaq.

How it works
- Investors can buy STRK at $80 per share.
- Strategy pays an 8% annual dividend.
- Dividends can be received in cash, MSTR stock, or a mix of both.

The bigger picture? More STRK sales mean more Bitcoin purchases.
STRK debuts today, and early buzz suggests strong investor interest.

6/ Increasing the Leverage Ratio

Leverage ratio = The proportion of Bitcoin purchased with borrowed funds.
Currently, Strategy’s leverage ratio sits at ~18%, but it aims to push it up to 20-30%, potentially driving higher Bitcoin yields.

7/ Bitcoin Holdings Surge to 471,107 BTC

As of Q4 2024, Strategy holds a staggering 471,107 BTC around 2.37% of Bitcoin’s total supply!(its really decentralized! wait you think its ponzi controlled by billionaires too?)
Even more impressive? Nearly half of that (218,887 BTC) was acquired in Q4 alone

8/ Is This Bitcoin Strategy Actually Working? Short answer, Yes extremely well

Over the last four years, Strategy’s performance has been nothing short of remarkable.