Microstrategy’s CEO, Michael Saylor, known for his Bitcoin stance, steps down as the company reports a loss of $1.06 billion in Q2 2022. Saylor reportedly will take the role of the executive chairman in the company as Phong Le, the current president, becomes the CEO. The reason for this step-down, as stated in the reports, seems to be the Bitcoin losses that the company has faced. So, as Michael takes the other role, he would focus on Microstrategy’s BTC strategy and long-term corporate strategy.
Michael Saylor will no longer be the CEO of Microstrategy
The company is not in very good shape right now. Microstrategy’s shares are down 55% in the last 1-year, trading currently at $278.26. The Bitcoin losses they are facing and the falling business is the primary reason for this price action. Out of the total losses in Q2 2022, Bitcoin falling to $23k was the primary contributor. It accounted for more than $900 million in losses, as reported by Microstrategy.
Their massive holdings in Bitcoin show the belief that the company’s CEO has. However, they are not an investment firm but rather a software, business intelligence, and analytics company. So, it is not good for the company if the CEO is only focused on this one thing, that’s Bitcoin.
In fact, the company’s total valuation is now roughly equal to the Bitcoin holdings they have. This shows that the investors are not seeing any real value in the company other than their BTC on the balance sheet. So, it’s good that they are doing something about this by changing the management structure.
What does this mean for the company?
Michael Saylor says that the company’s software business and Bitcoin business are two separate entities. So, as he steps down from the role of the CEO, he will focus solely on the Bitcoin part. While, the company’s new CEO, Phong Le, will focus on the software side of Microstrategy. This change in structure could mean that the price of its shares finally decouples from Bitcoin, and Microstrategy’s evaluation rises. Q3 earnings results will show what changes Michael stepping down as the CEO will bring.
What are your thoughts as Michael Saylor steps down as Microstrategy’s CEO? And do you think it can impact their Bitcoin plans? Let us know in the comments below. And, if you found our content informative, do like and share with your friends.