MicroStrategy Simplifies Its Brand While Navigating Financial Challenges – BitRss

U.S.-based company MicroStrategy announced a rebranding, simplifying its name to Strategy. The company stated that this name change reflects its focus on long-term goals. Despite this rebranding, there will be no significant changes to the company’s plans.

Financial Performance and Challenges

The company reported financial difficulties in the fourth quarter of 2024. Total revenue declined by 3% compared to the same period last year, reaching $120.7 million. Gross profit fell to $86.5 million, while a recorded impairment of $1.006 billion in digital assets caused an increase in operating expenses.

As a result, the net loss reached $670.8 million, and the company also experienced a decrease in cash and cash equivalents. These financial figures indicate the challenges the company faces under its current strategy. Market followers will closely monitor upcoming developments.

Tax and Accounting Regulations

Under new crypto accounting rules, Bitcoin’s fair value will be reflected in the income statement. CFO Andrew Kang noted that this regulation will provide transparency in financial results.