Bitcoin supporter Michael Saylor will step down as CEO of software company MicroStrategy, of which he is a co-founder, and will assume the role of executive chairman instead. Saylor’s trust in Bitcoin has made the company a participatory vehicle for cryptocurrency. The news came when the company announced its second quarter results. It recorded a loss of $ 1.062 billion mainly due to a $ 917 million devaluation based on the value of its bitcoin holdings, which have declined since the price spike in November last year.
Phong Le, current president of MicroStrategy, will succeed Saylor as CEO. I look forward to leading the organization for the health and long-term growth of our business software and bitcoin acquisition strategies, Le said in a statement to shareholders.
In 2020, MicroStrategy acquired $ 250 million worth of Bitcoin and, as of June 30, 2022, MicroStrategy reports that it currently holds $ 1.988 billion worth of Bitcoin.
Digital Assets: As of June 30, 2022, the book value of MicroStrategys digital assets (including approximately 129,699 bitcoin) was $ 1.988 billion, representing cumulative impairment losses of $ 1.989 billion since the acquisition and an average book value per bitcoin of approximately 15,326 reflects the US dollar. . As of June 30, 2022, Bitcoin’s initial cost base and MicroStrategy’s market value were $ 3.977 billion and $ 2.451 billion, respectively, with an average cost per bitcoin of approximately $ 30,664 and a market price per bitcoin of $ 18,895. , respectively. 02 reflects the US dollar.
MicroStrategy’s note to investors says Saylor will continue to oversee the company’s bitcoin acquisition strategy as chairman of the board’s investment committee. It is unclear what led to the organizational change, as Saylor has led MicroStrategy since its inception in 1989.
“I believe separating the roles of president and CEO will allow us to better follow our two corporate strategies of acquiring and holding bitcoin and growing our business analytics software business,” says Saylor. As Executive Chairman, I will be able to focus more on our bitcoin acquisition strategy and related bitcoin advocacy initiatives, while Phong, as CEO, will have the authority to oversee all business operations.
In April, Saylor announced that MicroStrategy would be the first company to roll out Fidelity’s bitcoin-based 401 (k) retirement plan to its employees.
The Securities and Exchange Commission has initiated an investigation into MicroStrategy for opposing how the company accounts for its bitcoins in one of its filings in 2021. As noted by Bloomberg Tax, Microstrategy used non-GAAP measures to measure its bitcoin assets. that are not based on general accepted accounting principles (GAAP). Companies tend to use non-GAAP methods sparingly.
MicroStategy was also investigated by the SEC in 2000 on charges of civil accounting fraud. The SEC accused Saylor and his top executives of overestimating the company’s revenue and profits after its IPO from June 1998 to March 2000. Saylor and two of his executives entered into a $ 11 million deal with the agency. without either of them admitting or denying the commission’s allegations.