Michael Saylor Resigns as MicroStrategy CEO After Bitcoin Losses
Michael Saylor, co founder of MicroStrategy and outspoken Bitcoin proponent, will leave the chief executive post. He will serve as executive chairman and devote his attention to Bitcoin acquisition and advocacy. Shares of the Tysons Corner software firm jumped 14.8 percent on 3 August after the announcement.
MicroStrategy disclosed a $917 million impairment charge on its Bitcoin holdings for the second quarter. The cumulative loss on the cryptocurrency reached $1.062 billion. Saylor will cede daily control to company president Phong Le, who will assume the chief executive role.
Bitcoin Holdings Trigger $1 Billion Loss
The firm reported second quarter results on 2 August. Financial statements show a net loss of $1.062 billion, driven by a $917 million write down tied to Bitcoin. The company holds 129,699 Bitcoin acquired at an average price of $30,664 per coin. Market value of the holdings on 30 June equaled $1.988 billion, less than half the purchase cost.
Saylor began accumulating Bitcoin in August 2020 with an initial $250 million purchase. Additional acquisitions followed through convertible debt offerings. The strategy transformed MicroStrategy from a business intelligence vendor into a leveraged bet on the cryptocurrency.
Chairman Role Sharpens Bitcoin Focus
MicroStrategy stated that Saylor will retain influence over Bitcoin strategy as executive chairman. In a press release he said, âI will concentrate on our Bitcoin acquisition strategy and advocacy initiatives. Phong will direct overall corporate operations.â The statement gave no details on future purchases or financing plans.
Saylor launched MicroStrategy in 1989 and took it public in 1998. The company now holds more Bitcoin than any other publicly traded corporation. The next chairman's move remains unknown amid a 70 percent decline in the cryptocurrency price from its November 2021 peak.
