Erik Weijers, 8 months ago

Saylor will step down as CEO, becomes chairman MicroStrategy

Michael Saylor, the charismatic Bitcoin bull and the person responsible for buying up over 120,000 Bitcoin, is going to trade his role as CEO of MicroStrategy (MSTR) for that of executive chairman. There is plenty of speculation as to whether this change has to do with the over a billion dollar unrealized loss that the company had to take on its Bitcoin position.

In its note to shareholders, the NASDAQ-listed software company let it be known that in his new role, Saylor will continue to oversee the strategy to purchase Bitcoin. The new CEO, Phong Le, also explicitly mentions the word Bitcoin in his own statement. In doing so, MicroStrategy seems to indicate that it does not want to change its course. Since August 2020, the company has had a dual strategy of software company on the one hand and Bitcoin fund on the other.

Market is unmoved

Bitcoin's share price did not move after the news. The market apparently did not get nervous from the fact that it has now become more likely that the 120,000 Bitcoin in reserves could sooner or later (partly) be sold.

Michael Saylor has been CEO without interruption since 1989, so it is not trivial news. On the other hand, the move can also be seen as a logical one: for the past two years, Saylor the Bitcoin bull bull bull has been seemingly nonstop busy with Bitcoin-related education and promotion. The company's software branch was perhaps in danger of getting less space in his personal agenda.

Influence not waning?

All in all, the CEO's grip on the company does not seem to be over. If only for the fact that he owns 24% of the company's shares. Also, at the time in 2020, the shareholders were informed well in time about the new strategy to get into Bitcoin. That said, MSTR shares have taken hefty losses over the last six months - although the price is still double what it was before the Bitcoin purchases.

Either way, the current bear market is a big test for MSTR. The weaker economy is putting pressure on the company's results, while its Bitcoin, bought partly on credit, is incurring an interest burden of 43 million dollars per year. Luckily, the company still has a hefty war chest of dollars as well!

Featured articles
Four trading strategies for crypto
Bitcoin and Ethereum: what are the differences?
What determines the Bitcoin price?
Related articles
Bitcoin activists shine a beacon of hope on the ECB tower

Mar 30, 2023

There are true believers out there who think that the world can be saved with and through Bitcoin. Some argue that they are completely out of their minds while others listen and try to figure out if this perspective reveals at least an ounce of truth. Sticking to the narrative that many Bitcoiners are following, the truth is that institutions like the ECB have become obsolete and do more harm than good.

Trade anytime, anywhere

Boost your trading impact and reaction time in over 80+ cryptocurrencies via instant access to your portfolio with the LiteBit app.

  • 2525 Ventures B.V.
  • 3014 DA Rotterdam
  • The Netherlands
More info
  • About LiteBit
  • Careers
  • Support
  • Sell
  • News
  • Education
  • Affiliates
Subscribe for updates

Sign up to stay informed via our email updates

Explore popular coins
© 2023 LiteBit - All rights reserved