MicroStrategy CEO steps down as company takes a $917 million hit on its Bitcoin investments - The Verge
MicroStrategy co-founder Michael Saylor is stepping down as CEO and will instead assume the role of executive chairman. Saylor says this will allow him to "focus" more on the company’s Bitcoin acquisition strategy.
Bitcoin advocate Michael Saylor is stepping down as the CEO of the software company he co-founded, MicroStrategy, and will instead take on the role of executive chairman. Saylor’s belief in Bitcoin has turned the company into a holding vehicle for the cryptocurrency. The news came as the company reported its second-quarter earnings. It noted a loss of $1.062 billion, mostly due to an impairment charge of $917 million based on the value of its Bitcoin holdings, which have plunged since the price peaked in November last year.
Phong Le, MicroStrategy’s current president, will take Saylor’s place as CEO. “I look forward to leading the organization for the long-term health and growth of our enterprise software and bitcoin acquisition strategies,” Le said in a statement to shareholders.
In 2020, MicroStrategy acquired $250 million in Bitcoin, and as of June 30th, 2022, MicroStrategy reports it currently holds $1.988 billion in Bitcoin.
Digital Assets: As of June 30, 2022, the carrying value of MicroStrategy’s digital assets (comprised of approximately 129,699 bitcoins) was $1.988 billion, which reflects cumulative impairment losses of $1.989 billion since acquisition and an average carrying amount per bitcoin of approximately $15,326. As of June 30, 2022, the original cost basis and market value of MicroStrategy’s bitcoin were $3.977 billion and $2.451 billion, respectively, which reflects an average cost per bitcoin of approximately $30,664 and a market price per bitcoin of $18,895.02, respectively.
MicroStrategy’s message to investors says Saylor will continue to “provide oversight of the Company’s bitcoin acquisition strategy as head of the Board’s Investments Committee.” It’s unclear what prompted the organizational shakeup, as Saylor has helmed MicroStrategy since he founded the company in 1989.