Saylor stated that separating the roles of President and CEO would allow buying and holding Bitcoin more efficiently. He has remained faithful to the pioneering cryptocurrency despite the low prices, insisting they will only pay off loans if it drops by USD 3,600.
Michael Saylor announced he would stop being the CEO of MicroStrategy while publishing the financial reports for the second quarter. The firm that the billionaire entrepreneur founded in 1989 is among the wallet providers with the highest amount of Bitcoin worldwide.
Michael Saylor Leaves His Position as the CEO of MicroStrategy
Saylor will now serve the business intelligence company as the president of the Board of Directors. Meanwhile, Phong Le, the current president and former CFO of MicroStrategy, will become the CEO.
Michael Saylor stated that separating the roles of president and CEO would allow them to work better. He thinks they could pursue their Bitcoin buying and holding strategies while growing their business more efficiently.
Phong Le was the CFO of MicroStrategy between August 2015 and July 2020 before becoming its president in May 2020. He will proceed in his functions as chief executive officer, taking the place of Michael Saylor.
He said he hoped to lead the company in the long-term growth and health of its trading software and Bitcoin acquisition strategies.
When Phong Le began his tenure as CFO, he reiterated that MicroStrategy remained committed to its Bitcoin HODLing approach.
The Financial Results of MicroStrategy for 2022 Q2
Since late July, MicroStrategy has held 129,699 bitcoins, equivalent to around USD 2 billion and an average of USD 3,664 per unit. When the price of BTC reached its all-time high in early November 2021, it was worth up to USD 8 billion.
In the second quarter of 2022, a USD 10 million BTC dump on June 29th caused MicroStrategy to bottom out. That situation indicated that the firm might go through a shortage of cash.
The latest sharp drop in the Bitcoin price has led MicroStrategy to a depletion in cryptocurrencies equivalent to USD 918 million. The company also lost USD 417 million worth of Bitcoin in the second quarter of last year.
Amid a recession in the industry, Saylor told MicroStrategy they would continue to HODL through adversity. He pointed out that the company has prepared to face volatility and restructure its balance sheet accordingly. The last earnings report on May 3rd also indicates that the company would look at the possible potential performance of Bitcoin more cautiously.
Saylor said that MicroStrategy is losing over USD 1.3 billion with its Bitcoin investment. The price of BTC is now below the Dollar-cost averaging (DCA), which is 25% of the value invested.
The CEO of MicroStrategy has remained faithful to the pioneering cryptocurrency despite the low prices. He has insisted that they will only pay off the loans his company produced between 2020 and 2021 if it drops by USD 3,600.
The measure taken by Saylor might appease the shareholders following the damage caused by his HODling technique. It is relevant to remember that he has served as CEO since the foundation of the company.
Bitcoin is trading at around USD 23,398 and has accumulated a 10.2% gain over the last week. Its daily trading volume is above USD 37.48 billion, while its market capitalization is about USD 447.16 billion, according to CoinGecko.
By Alexander Salazar