Strategy Set to Receive $12.75 Billion Boost To Balance Sheet: Bernstein
MicroStrategy has now been renamed as Strategy, with its balance sheet set to gain $12.75 billion in growth, according to analysts at Bernstein Report. The strategy report said that the fourth quarter of 2024 net loss was $670.8 million, with operating expenses 693% year-on-year to $1.1 billion. This includes more than $1 billion in impairment losses associated with its Bitcoin holding ratio, up from $39.2 million in the same quarter of 2023.
Strategies to recognize unrealized Bitcoin earnings
Bernstein analysts noted that as the strategy adopts the new fair value accounting rules of the Financial Accounting Standards Commission starting in January 2025, this will result in a one-time cumulative adjustment of $12.75 billion to reach its open balance of retained earnings, which The company will enable the company, which will enable the company to recognize the unrealized gains of its Bitcoin holdings.
Analysts also noted that starting from Q1 2025, Bitcoin’s book value will be consistent with its market value, allowing the company to report any price increase as a gain in its net income.
However, under the tax treatment of strategic bitcoin holdings, under the provisions of the FASB New Rules and the provisions of the Inflation Reduction Act of 2022, uncertainty about the tax treatment of strategic bitcoin holdings is vaguely visible.
MicroStrategy is now a “strategy”
Micro-study Rename change Just simply “strategy” before the earnings are released on Wednesday. The new logo has a stylized “₿” to represent its focus on Bitcoin and its position as a Bitcoin finance company. The original color now is orange, symbolizing energy, intelligence and Bitcoin.
On Monday, the strategy’s 12-week continuous stripes of Bitcoin purchase ended after confirming that the sale of Class A common stock under the stock equity plan on its market and did not buy Bitcoin between January 27 and February 2 .
