MicroStrategy Rebrands as Strategy, Emphasizing Bitcoin Strategy
MicroStrategy (MSTR) has rebranded as Strategy, signaling its unwavering commitment to its cryptocurrency strategy. The company has adopted a bitcoin symbol as its new logo and will now operate under the name Strategy.
In a statement, Strategy declared itself "the world's first and largest Bitcoin Treasury Company." Despite the announcement, MSTR shares declined slightly on Wednesday, with minimal changes following the midday update. Over the past year, MSTR stock has risen 17%, outperforming Bitcoin's modest 1% gain.
Strategy holds over 470,000 bitcoins purchased for an estimated $30 billion since 2020. To fund its Bitcoin investments, the company recently issued preferred stock at a discount and plans to raise $42 billion over the next three years.
Once a software company, Strategy has become the world's largest Bitcoin holder. Its aggressive Bitcoin purchases have propelled its stock performance above Bitcoin's over the past five years. While Strategy's shares surged after the election of crypto-friendly President Donald Trump, recent Bitcoin purchases have been met with a more tempered response due to uncertainties surrounding Trump's economic policies. Recent tariffs imposed on China, Canada, and Mexico sent crypto stocks tumbling.
Strategy is expected to release its fourth-quarter earnings on Wednesday after the market closes. Analysts anticipate earnings per share of $0.02 and revenue of $124 million. Yahoo Finance reports that 11 of its tracked analysts recommend buying MSTR stock.
Shares of Strategy fell after its third-quarter earnings in October, which missed analysts' forecasts and coincided with the announcement of its $42 billion capital plan.