MicroStrategy rebrands as Strategy, emphasizing commitment to Bitcoin
MicroStrategy (MSTR) unveiled a major rebrand on Wednesday, shifting its name to "Strategy" to highlight its strong focus on cryptocurrency.
The company said it will now do business under the name Strategy and changed its logo to a Bitcoin symbol. In its announcement, Strategy said it is "the world’s first and largest Bitcoin Treasury Company," News.Az reports, citing foreign media.
Shares of the company were down about 2% on Wednesday, and were little-changed after the midday announcement. Year-to-date, the stock is up 17% against bitcoin's more modest 1% gain.
MicroStrategy said in a regulatory filing Monday that it holds more than 470,000 bitcoins purchased over the years for an estimated $30 billion. MicroStrategy began buying bitcoin in 2020.
The company recently sold preferred stock at a discount to fund its bitcoin investments and has said it plans to raise $42 billion over the next three years as part of the strategy.
Once a small software firm, MicroStrategy is now the world’s largest bitcoin holding company, and its spending spree on the cryptocurrency has seen the stock outperform bitcoin handily over the last five years.
Strategy shares soared on the heels of the election of crypto-friendly US President Donald Trump as part of the so-called Trump trade, but more recent bitcoin purchases have received a cooler reception as uncertainty surrounding Trump’s economic policies puts crypto stocks under pressure.
New tariffs on China, Canada, and Mexico announced Monday, for example, sent crypto stocks tumbling along with the broader market.
The company is set to report fourth quarter earnings after the bell Wednesday.
Analysts tracked by Bloomberg expect the company to report earnings per share of $0.02 and revenue of $124 million. Some eleven of the analysts tracked by Yahoo Finance hold a Buy rating on the stock. Shares of MicroStrategy fell sharply after its third quarter earnings results in October, which missed analysts’ forecasts, just as the company unveiled its $42 billion capital plan.
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