Historic $12.6 Billion Loss for Strategy in Q4 Following Steep Depreciation of Bitcoin Holdings

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Corporate Bitcoin holder Strategy reported a catastrophic fourth-quarter financial performance on Wednesday, booking one of the largest quarterly losses in the annals of US public markets. The massive deficit was triggered by a sharp correction in the price of Bitcoin, which drastically devalued the company’s core treasury asset.

The firm, which formally changed its name from MicroStrategy, posted an operating loss reaching $17.4 billion for the quarter.

Management attributed this loss almost exclusively to accounting charges reflecting unrealized losses on its Bitcoin investments. Consequently, the net loss applicable to common shareholders ballooned to $12.6 billion, a figure that dwarfs the $671 million loss recorded in the year-earlier quarter.

The earnings announcement unfolded against a backdrop of extreme turbulence in the cryptocurrency market. Bitcoin itself endured one of its steepest single-day declines on record, tumbling close to fifteen percent from an opening price near $73,100 to a low around $62,400 during the trading day, as per standard price indices.