MicroStrategy Rebrands, Focuses on Bitcoin

CRYPTO
MicroStrategy Rebrands, Focuses on Bitcoin

Strategy, formerly MicroStrategy, reported its fourth straight quarterly loss, aiming to avoid a multibillion-dollar tax hit. The company posted a $670.8 million Q4 net loss, largely due to a $1 billion Bitcoin impairment charge on its $46 billion holdings. Revenue fell 3% to $120.7 million.

Strategy’s CFO, Andrew Kang, confirmed that Q4 would be the last impairment charge as the company shifts to fair value accounting in Q1 2025. This delay helps it avoid triggering a 15% corporate alternative minimum tax, introduced under the Inflation Reduction Act.

Chairman Michael Saylor is working with the IRS and lawmakers for an exemption, similar to Berkshire Hathaway. Regardless, he remains committed to expanding Strategy’s Bitcoin holdings, currently 471,100 coins. The company also announced a rebrand to “Strategy”, adopting the Bitcoin ₿ logo to solidify its crypto-first identity after 35 years in software.

Invest Smarter with Digital ETPs

DeFi Technologies (US: DEFTF & CAD: DEFI.NE) is transforming traditional finance by offering regulated access to over 60 digital asset exchange-traded-protocols (ETPs). Empower your portfolio with secure solutions for Bitcoin, Ethereum, Solana, Ripple and beyond.

Discover the Future of Investing

TECH
Big Tech Boosts AI Spending to $320B

Tech giants Meta, Amazon, Alphabet, and Microsoft plan to invest up to $320 billion in AI infrastructure in 2025, up from $230 billion in 2024. Amazon leads with a $100 billion AI spending plan, focusing on AWS. Microsoft is allocating $80 billion, with more than half spent in the U.S. Alphabet aims for $75 billion, prioritizing technical infrastructure, while Meta is set to spend $60–$65 billion, calling 2025 a “defining year for AI.”

The rise of China’s DeepSeek has intensified competition, triggering market volatility and pushing AI chip stocks down $800 billion in a day. Despite weaker-than-expected cloud growth, companies remain committed to AI, expecting long-term gains.

Apple and Tesla also invest in AI, though their spending models differ. Nvidia, set to report earnings soon, is a key supplier. Amazon’s CEO predicts AI infrastructure constraints will ease by late 2025, driving further expansion.

FINANCE
Palantir Stock Surges on Strong Earnings

Palantir Technologies' stock surged 34% last week, closing at $110.85, after strong Q4 earnings and optimistic guidance. The AI-driven data firm has thrived in defense and intelligence but is now expanding commercially, with U.S. commercial revenue jumping 64%, outpacing its 45% government growth.

Bank of America raised its price target to $125, citing Palantir’s leadership in AI-driven transformation across industries. Analysts believe the company is well-positioned as Elon Musk’s Department of Government Efficiency (DOGE) seeks to reform federal hiring and spending.

Musk’s team is pushing for meritocracy and transparency, aligning with Palantir’s government contracts strategy. CEO Alex Karp embraces disruption, expecting “unexpected things” but predicting Palantir will emerge stronger. With Trump instructing Musk to assess the Pentagon’s $850 billion budget, analysts see huge opportunities for AI-driven efficiencies in government spending, further boosting Palantir’s prospects.

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.