Take a fresh look at your lifestyle.

Michael Saylor becomes President of MicroStrategy

On Tuesday, MicroStrategy (MSTR) announced that founder Michael Saylor will step down as the company’s CEO to take over the presidency. This will allow it to continue the company’s long-term Bitcoin adoption strategy.

Therefore, Phong Le, current president of the company, will assume the executive direction of MicroStrategy. This occurs after some quarterly reports that leave much to be desired. Revenues reached 122.1 million, although they were below the expectation of 126 million. Additionally, the company reported quarterly losses of $918.1 of which $917.8 million are attributable to Bitcoin.

If you don’t want to miss any outstanding event, you can follow the KEY ALERTS Telegram channel to be informed. There you will see notes like below and remember Information is power!

Michael Saylor and the MicroStrategy Chairmanship

In a statement, the company explained that Saylor will primarily focus on long-term corporate strategy and short-term Bitcoin adoption. Saylor, regarding this, commented:

«As CEO, I will be able to focus more on our bitcoin acquisition strategy and related bitcoin promotion initiatives, while Phong will be empowered to manage overall corporate operations as CEO.”.

Although the price of Bitcoin has two weeks of recovering its value, it is still well below its all-time high. Which could explain to us the tough corporate situation MicroStrategy is facing. Same situation in which Michael Saylor assumes the presidency.

The company closed the second quarter with a deterioration of its digital assets close to $1.989 billion. Which puts the book value of MicroStrategy (made up of Bitcoins) at $1988 billion. Initially, the original cost base and market value for the company was $3.977 billion and $2.451 billion. Therefore, the cost of Bitcoin was approximately $30,664.

Michael Saylor assumes the chairmanship of MicroStrategy at a crucial time for cryptocurrencies. Bitcoin could start a recovery if investor confidence is not shaken by the tensions in Taiwan or again by the war in Ukraine and the energy crisis.

The current value of MicroStrategy investments

In late 2020, MicroStrategy began buying Bitcoin and has since spent more than $4 billion. To achieve this feat, he issued corporate debt bonds, stocks and also obtained loans.

Although the announcement about Michael Saylor assuming the presidency of MicroStategy did not have a major impact, the value has recovered 40% during the last month. However, it is still 55.48% below its value at the beginning of the year.

Since MicroStrategy began to slide in May, investors have sold their shares at a rapid pace. Between May and July 14, from 1.9 million to 3.6 million shares. With a nominal value of more than a billion in short positions, according to information collected by Yahoo Finance.

“Our people and our brand have incredible momentum. I would like to reinforce our commitment to our customers, shareholders, partners, and employees, and look forward to leading the organization for the long-term health and growth of our enterprise software and Bitcoin acquisition.”

At current Bitcoin prices, the company’s cryptocurrency investments, primarily Bitcoin, have a market value of $2.9 billion. This value could continue to rise if MicroStrategy continues with the regular acquisition of Bitcoin and, on the other hand, the price of Bitcoin continues to increase.

Comments are closed.