Michael Saylor resigns as CEO of MicroStrategy. Phong Le, president of the company, will assume the role of CEO.
MicroStrategy co-founder Michael Saylor gave up his CEO title and said he would focus more on bitcoin after the enterprise software maker announced a loss of more than $ 1 billion related to the cryptocurrency’s price drop. in the second quarter.
Phong Le, president of the company, will assume the role of CEO.
Michael Saylor, who is a bitcoin maximalist and pioneered MicroStrategy’s strategy to raise billions of dollars from bitcoin, will continue as chairman of the board and will also take on the new role of executive chairman. .
“Je pense que la séparation des rôles de président du conseil et de président exécutif nous permra de mieux poursuivre nos deux stratégies d’entreprise, à savoir acquisition et la détention de bitcoins et la croissance de notre activité de logiciels d’analyse d ‘ agency”, Mr. Saylor said in a statement.
“As Executive Chairman, I will be able to focus more on our bitcoin acquisition strategy and related bitcoin advocacy initiatives, while Phong will have the power of CEO to manage the company’s overall operations.“
Phong Le has been president of MicroStrategy since July 2020, and since joining the company in 2015 he has also held various other leadership roles, including CFO and COO.
MicroStrategy plans to hold a press conference with analysts to discuss the second quarter results tomorrow during the day
MicroStrategy reports a loss of $ 1 billion
MicroStrategy recorded a devaluation of $ 917.8 million related to the decline in the value of the bitcoins it holds. Bitcoin fell 59% in the quarter and was trading around 45% lower than the end of the previous year.
Revenue dropped to $ 122.1 million. Analysts interviewed by Bloomberg had expected second quarter revenue of $ 123.25 million. Quarterly net loss of $ 1.062 billion, compared with a loss of $ 299.3 million in the same quarter last year. The quarterly loss is almost exactly double the company’s revenue over the past 12 months.
As of June 30, the book value of the company’s 129,699 bitcoins was $ 1.988 billion, reflecting the cumulative impairment loss of $ 1.989 billion. The cumulative amount is now greater than the bitcoins in the company’s balance sheet.
MicroStrategy began investing in bitcoin in the summer of 2020, after Saylor said he considered it a hedge from inflation. Shares in the company rose more than 170% that year.
MicroStrategy shares fell approximately 2.3% in post-trade trading. The stock has lost around 50% this year, matching bitcoin’s drop.