Michael Saylor resigns as CEO of Microstrategy

To focus on MicroStrategy’s Bitcoin (BTC) business, Michael Saylor resigns as CEO in favor of Phong Le. He will remain chairman of the board anyway, but will now focus on acquiring new bitcoins and using them for his company.

Reversal of roles at the head of Microstrategy

Bitcoin suffered a steep decline during this bear market in cryptocurrencies. Although it has dropped below $ 20,000, it still has strong support. The first cryptocurrency managed to give investors confidence by returning above $ 20,000 and MicroStrategy, the company with the most bitcoins in its treasury, decided to do more.

Michael Saylor has been with the company since 1989 and specializes in software publishing. In a press release, the company announced that Saylor will step down as CEO on August 8, but that doesn’t mean he will leave the company. On the contrary, he will focus more on Bitcoin, which he is known to be passionate about.

Michael Saylor will work on larger, longer-term problems at MicroStrategy. He will be both the executive chairman of the company who will lead the investment committee.

“I believe separating the roles of president and CEO will allow us to better pursue our two business strategies of acquiring and holding bitcoin and growing our business analytics software business. As Executive President, I will be able to focus more on our business strategy. acquisition of bitcoin […] while Phong will have the power of CEO to manage the entire operation of the company. “Declared the person concerned.

MicroStrategy has appointed Phong Le as the company’s new CEO, replacing Michael Saylor. Phong Le is currently president of MicroStrategy and has been since 2015.

It’s a big move as the roles of the two leaders have been reversed and could be a big challenge for Phong Le. This year, MicroStrategy fell 48% in the stock market due to its involvement with Bitcoin (and other cryptocurrencies).

A new challenge for Microstrategy

MicroStrategy reported that second quarter revenue was down 2.6% from the same period last year. According to the company’s latest economic report, falling cryptocurrency prices resulted in a loss of between $ 918 million and $ 1,874 million in MicroStrategy’s digital assets.

MicroStrategy started buying bitcoins in 2020 and after several transactions ended up with a total of 129,699 bitcoins. He paid an average of $ 30,664 per bitcoin.

MicroStrategy showed no signs of abating, despite the market. The company has been increasing its bitcoin reserves since the last quarter of 2020, and some players, such as Tesla, have failed to deliver on their promises.

At the end of the second quarter of 2022, 129,699 bitcoins were still in MicroStrategy’s hands. While they were originally worth $ 2.45 billion, they are now worth closer to $ 3 billion. However, since the beginning of 2022, the amount of bitcoin purchased appears to have slowed down.

The price of a cryptocurrency can go up or down, so it’s important not to make any assumptions about its long-term success based on short-term comparisons. However, remembering the long-term history of the leading cryptocurrency can help build confidence in its future.

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