Saylor, CEO of Microstrategy Moves to Chairman of the Board

Michael Saylor of MicroStrategy is leaving his role as CEO to become the company’s CEO, according to a statement from the company Tuesday afternoon. The company’s president, Fung Lo, will take over from Saylor.

Saylor has been the CEO since the company was launched in 1989. MicroStrategy was launched in 1998.

MicroStrategy’s stock is down more than 48% this year. The price of Bitcoin has fallen more than 51% over the same time period.

“I believe that the division of roles between the Chairman and CEO will enable us to better pursue our corporate strategy to acquire and hold bitcoin and grow our enterprise analytics software business. As CEO, I will be able to focus more on our bitcoin acquisition strategy,” Mr. Saylor said at Version:

The announcement comes as the company reports earnings for the second quarter, in which its total revenue fell 2.6% year-over-year.

MicroStrategy may technically be in the field of enterprise software and cloud-based services, but Saylor said the publicly traded company doubled as the first fund to be traded on the US spot bitcoin exchange.

“We’re kind of like an ETF that you don’t have,” Saylor told CNBC on the sidelines of the Bitcoin 2022 conference in Miami in April.

So far, the Securities and Exchange Commission has only approved ETFs that track contracts that speculate on the future price of bitcoin, rather than the cryptocurrency itself. The Commission refused to give the green light to any of the official applications for bitcoin-based ETFs — a financial tool that would give investors an opportunity to invest in bitcoin without having to go through exchange applications, open a crypto wallet, or deal with any of the logistics Others are related to buying and holding bitcoin.

“If there is an instant ETF, you will pay a fee of 1%, and it will not be leveraged. With MicroStrategy, we have a software company that generates cash flow, so we convert our cash flow into Bitcoin,” Saylor said in April.

MicroStrategy has added bitcoin to the company’s balance sheet over the past two years. The company has now spent nearly $4 billion acquiring bitcoin with an average price of $30,700.

MicroStrategy used the company’s debt to buy bitcoin, and in March, Saylor decided to take another step toward normalizing bitcoin-backed funding when he borrowed $205 million using bitcoin as collateral — to buy more cryptocurrency.

“We have $5 billion in collateral. We borrowed $200 million. So I’m not telling people to go out and take a highly leveraged loan. What I do, I think, is doing my best to lead the way and normalize the bitcoin-backed finance industry,” Saylor said in April. .

“Just as people realize that they can borrow for something, they realize that they will never have to sell it, and then they start extending their time horizon from — ‘It’s 36-month speculation’, to — ‘It’s a 36-year property.'”

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