Saylor Steps Down as MicroStrategy CEO to Double Down on Bitcoin

MicroStrategy co-founder Michael Saylor has relinquished his position as chief executive after reporting a $1 billion loss on the company’s Bitcoin holdings.

Saylor will assume the newly created position of executive chairman and will continue to serve as chairman of the board. Focusing primarily on innovation and long-term corporate strategy, Saylor will continue to conduct the Company’s Bitcoin acquisition strategy as head of the Board’s Investments Committee. 

“MicroStrategy’s original strategy and consulting business needs full-time attention,” said Henry Elder, head of decentralized finance at Wave Financial. “Now Michael can focus on what he does best, promoting Bitcoin, and the company can focus on making more money to buy more Bitcoin. They are basically doubling down.” 

The chief executive role will be filled by MicroStrategy President Phong Le, who joined the firm in 2015 and has previously served as chief financial officer and chief operating officer.

The Virginia-based business intelligence firm, co-founded by Saylor in 1989, also registered 450,000 shares with the Securities and Exchange Commission.

“I believe that splitting the roles of Chairman and CEO will enable us to better pursue our two corporate strategies of acquiring and holding bitcoin and growing our enterprise analytics software business,” Saylor said in a press release.

“As Executive Chairman, I will be able to focus more on our bitcoin acquisition strategy and related bitcoin advocacy initiatives, while Phong will be empowered as CEO to manage overall corporate operations.”

MicroStrategy loses $1B on Bitcoin holding

The transition comes as MicroStrategy announced its financial results for the second quarter of this fiscal year, or the three-month period ended June 30. The decline in the value of the Bitcoin it holds led to a $917.8 million impairment charge.

By the end of the quarter, the carrying value of the company’s 129,699 Bitcoin had shrunk to $1.988 billion, the company said, reflecting the cumulative impairment loss of $1.989 billion. 

Meanwhile, revenue came in just shy analysts’ expectations of $123.25 million to just $122.1 million. The $299.3 million loss booked in the same quarter of last year is a mere fraction of the net quarterly loss of $1.062 billion, almost exactly twice the company’s revenue over the last 12 months.

Earlier, Saylor had made remarks clarifying the company’s Bitcoin strategy over fears of a margin call.

The post Saylor Steps Down as MicroStrategy CEO to Double Down on Bitcoin appeared first on BeInCrypto.

Earning Passive Income With Crypto

Related Posts

Fractional NFT Markets Slide 76% in Value in 7 Months, Diced-up Doge NFT Still Leads the Pack

When non-fungible token (NFT) collectibles became popular, the fractionalized NFT market grew past the $200 million range seven months ago in December 2021. Since then, the fractionalized…

Bored Ape Yacht Club (BAYC) NFT Sales Test New Higher-Low Slipping More Than $290M

Similar to more than 90% of NFTs, BAYC saw a significant reduction in sales volume due to negative market sentiment during the seventh month of the year. …

Crypto Use in Metaverse Could Threaten Financial Stability, Says BoE

The prospective widespread use of cryptocurrencies within a fully developed metaverse could pose a systemic risk to financial stability, according to Bank of England researchers. Were the…

Troubled CoinFLEX Files for Restructuring in Seychelles

On Tuesday, the troubled Cryptocurrency exchange, CoinFlex, filed for restructuring in a Seychelles court to resolve a shortfall due to a counterparty failing to make a margin…

Elon Musk Sells Tesla Shares Worth Nearly $7 Billion — Plans to Buy TSLA Stock Back if Twitter Deal Falls Through

Elon Musk has sold nearly 8 million Tesla shares worth almost $7 billion. “It is important to avoid an emergency sale of Tesla stock” if Twitter forces…

Citadel CEO Ken Griffin Spills Beans on Why He Outbid ConstitutionDAO

Citadel CEO Ken Griffin opens up on what prompted him to outbid ConstitutionDAO last year to obtain a rare copy of the U.S. Constitution. The prized document…