Michael Saylor steps down as CEO of MicroStrategy. Phong Le, the company’s chairman, will take on the role of CEO.
Michael Saylor, co-founder of MicroStrategy, stepped down from the CEO position and said he would focus more on bitcoin after the enterprise software maker posted more than $1 billion in losses related to the fall in cryptocurrency prices in the second quarter.
Phong Le, the company’s chairman, will take on the role of CEO.
Michael Saylor, a bitcoin maximalist and pioneer of MicroStrategy’s strategy to raise billions of dollars from bitcoin, will remain chairman of the board and will also take on a new role as executive chairman.
“I believe that separating the roles of chairman and executive chairman will allow us to better execute our two business strategies of acquiring and owning bitcoin and growing our analytics software business,” Mr. Saylor said in a statement.
“As executive chairman, I will be able to focus more on our bitcoin acquisition strategy and related bitcoin protection initiatives, and Fong, as CEO, will be empowered to manage the overall operations of the company.”
Fong Le has served as President of MicroStrategy since July 2020 and has held various other leadership roles since joining the company in 2015, including Chief Financial Officer and Chief Operating Officer.
MicroStrategy plans to hold a press conference with analysts to discuss second quarter results tomorrow during the day.
MicroStrategy reports losses of $1 billion
MicroStrategy recorded an impairment loss of $917.8 million related to the decline in the value of its bitcoins. Bitcoin was down 59% for the quarter and was trading about 45% lower than at the end of the previous year.
Revenue fell to $122.1 million. Analysts polled by Bloomberg had expected second-quarter revenue of $123.25 million. A quarterly net loss of $1.062 billion compared to a loss of $299.3 million in the same quarter last year. Quarterly losses are almost double the company’s revenue for the past 12 months.
As of June 30, the company’s 129,699 BTC had a book value of $1.988 billion, reflecting a cumulative impairment loss of $1.989 billion. The cumulative amount is now more than the bitcoins on the company’s balance sheet.
MicroStrategy began investing in bitcoin in the summer of 2020 after Saylor said he sees it as a hedge against inflation. The company’s shares jumped over 170% in the same year.
Shares of MicroStrategy fell about 2.3% after trading. Shares have lost about 50% this year, which is in line with the fall of bitcoin.