MicroStrategy CEO Michael Saylor Is Stepping Down To “Focus” On Bitcoin As President

Bitcoin advocate Michael Saylor is stepping down as CEO of the software company he co-founded, MicroStrategy, and will instead take over as CEO. Saylor’s belief in bitcoin has transformed the company into a cryptocurrency holding vehicle. The news came as the company announced its second-quarter earnings. It cited a loss of $1.062 billion, mostly due to impairment charges of $917 million based on the value of its bitcoin holdings, which have fallen since the price peaked in November last year.

Vong Lo, the current president of MicroStrategy, will replace Saylor as CEO. “I look forward to leading the organization for the long-term health and growth of the Foundation’s programs and bitcoin acquisition strategies,” Lee said in a statement to shareholders.

In 2020, MicroStrategy held $250 million in Bitcoin, and as of June 30, 2022, MicroStrategy reported that it currently owns $1.988 billion in Bitcoin.

Digital Assets: As of June 30, 2022, the book value of MicroStrategy’s digital assets (comprising approximately 129,699 Bitcoins) is $1.988 billion, reflecting a cumulative impairment loss of $1.989 billion since the acquisition and an average book value per bitcoin of approximately $15326. As of June 30, 2022, the original cost basis and market capitalization of Bitcoin MicroStrategy are $3.977 billion and $2.451 billion, respectively, reflecting the average cost of bitcoin at around $30664 and the market price per bitcoin of $18895.02, respectively.

MicroStrategy’s letter to investors says that Saylor will continue to “provide oversight over the company’s Bitcoin acquisition strategy in her capacity as chair of the Board Investments Committee.” It’s not clear what caused the organizational change, as Saylor has helped MicroStrategy since he founded the company in 1989.

“I believe that dividing the 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,” says Saylor. “As CEO, I will be able to focus more on our bitcoin acquisition strategy and related bitcoin advocacy initiatives, while Phong will be empowered as CEO to manage the company’s overall operations.”

In April, Saylor announced that MicroStrategy would be the first company to adopt Fidelity’s Bitcoin-based 401(k) retirement plan for its employees.

The Securities and Exchange Commission has opened an investigation into MicroStrategy, contesting the way the company handled Bitcoin in one of its 2021 filings. As noted before Bloomberg taxMicrostrategy used non-GAAP standards to record its Bitcoin assets, which are not based on generally accepted accounting principles (GAAP). Companies usually use non-GAAP methods sparingly.

MicroStategy was also the subject of a US Securities and Exchange Commission investigation into allegations of civil accounting fraud in 2000. The SEC accused Saylor and his top managers of exaggerating the company’s revenue and profits after it went public in June 1998 through March 2000. Saylor and two of his directors settled The executives are with the agency for $11 million, with none of them “acknowledging or denying the commission’s allegations.”

Leave a Reply

%d bloggers like this: