To focus on MicroStrategy’s Bitcoin (BTC) business, Michael Saylor is stepping down as CEO in favor of Phong Le. Still, he will remain chairman of the board, but will now focus on acquiring new bitcoins and using them for his business.
Reversal of roles at the head of Microstrategy
Bitcoin fell sharply during this cryptocurrency bear market. Although it fell below $20,000, it still has strong support. The first cryptocurrency managed to give investors confidence by going back above $20,000 and MicroStrategy, the company with the most bitcoins in their treasury, decided to get more involved.
Michael Saylor has worked for 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’ll sign off from the company. On the contrary, he will focus more on Bitcoin, which he is well known to be passionate about.
Michael Saylor will work on larger, longer-term issues at MicroStrategy. He will be both the executive chairman of the company and will lead the investment committee.
“I believe that separating the roles of chairman 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 Chairman, I will be able to focus more on our bitcoin acquisition strategy […] while Phong will be empowered as CEO to manage the entire operations of the company. “said the interested party.
MicroStrategy has named 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 it could be a huge challenge for Phong Le. This year, MicroStrategy has fallen 48% in the stock market due to its involvement with Bitcoin (and other cryptocurrencies).
A new challenge for Microstrategy
MicroStrategy reported that its second quarter revenue was down 2.6% from the same period last year. Falling cryptocurrency prices have reportedly resulted in a loss of between $918 million and $1,874 million in MicroStrategy’s digital assets, according to the company’s latest economic report.
MicroStrategy started buying bitcoins in 2020 and after several transactions ended up with a total of 129,699 bitcoins. She paid an average of $30,664 per bitcoin.
MicroStrategy showed no signs of letting up, despite the market. The company has been increasing its bitcoin reserves since the last quarter of 2020, and some players, like Tesla, have failed to deliver despite the promises made.
At the end of the second quarter of 2022, 129,699 bitcoins were still in the hands of MicroStrategy. While they were originally worth $2.45 billion, they are now worth closer to $3 billion. However, since the start of 2022, the amount of bitcoin purchased seems to have slowed down.
The price of a cryptocurrency can go down as well as up, so it’s important not to make 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.