Bitcoin bet backfires! Strategy(MSTR.US) suffers four consecutive quarters of losses, digital asset impairment loss skyrockets to $1bn

MicroStrategy(MSTR.US), the world's largest corporate holder of bitcoin, reported a fourth consecutive quarterly loss on Wednesday as the company took a markdown on its holdings of the cryptocurrency. The company recorded a $1.01bn impairment loss on its digital assets in the quarter, compared with $39.2m a year ago.

Strategy, formerly MicroStrategy, was founded by Michael Saylor and has become one of the biggest beneficiaries of the rise in bitcoin. Its shares rose nearly five-fold last year, helping it to join the Nasdaq 100 in December.

Strategy began buying and holding bitcoin in 2020 as its software business revenue declined. As of Feb 2, it held about 471,107 bitcoins. Last year, it announced a plan to raise $42bn over the next three years to buy more bitcoin.

For the three months ended Dec 31, the company reported a net loss of $670.8m, or $3.03 per share, compared with a profit of $89.1m, or 50 cents per share, a year ago.

Earlier in the day, the company said it would change its name to Strategy and unveil a new logo to emphasise its commitment to the cryptocurrency sector. The company said the brand overhaul was a "natural evolution" to integrate bitcoin, the world's largest and most well-known cryptocurrency, into its core business.

Gautam Chughani, an analyst at Bernstein, said the company may want to emphasise bitcoin as its core business and distance itself from its less important software division.

Strategy continues to aggressively invest in bitcoin. In a statement announcing the brand overhaul on Wednesday, MicroStrategy defined itself as the world's "first and largest bitcoin treasury company".

The company said its new logo features a stylised "B" to symbolise its bitcoin strategy.