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MicroStrategy Loses $918 Million in Q2 as Bitcoin “Plunge”, Michael Saylor Resigns as CEO

MicroStrategy Inc. co-founder Michael Saylor has announced he will step down as his CEO and said he will focus more on Bitcoin after the company maker reported a loss of more than $918 million related to the cryptocurrency exchange. Cryptocurrency prices plummeted in Q2.

Accordingly, Michael Saylor will continue to serve the company as Chairman of the Board of Directors. Phong Le – Company President and former Chief Financial Officer – will take over as CEO instead. The above decision will take effect from August 8.

In a statement, Saylor explained that:

I believe that separating the roles of Chairman and CEO will allow us to better pursue the two corporate strategies of buying and holding Bitcoin and growing our software business.

Phong Le held the position of CFO of MicroStrategy from August 2015 to July 2019 before becoming the company’s President in May this year. Mr. Phong will continue his duties as both Chairman and CEO. But he still holds the former CEO’s “don’t sell Bitcoin” stance, adding:

I look forward to leading the organization for the long-term growth and health of the company’s enterprise software and Bitcoin acquisition strategies.

At the start of his term as CFO in July, Phong Le clarified that MicroStrategy remained committed to his plan to hold Bitcoin under his watch.

The move of CEO Michael Saylor could be a measure to appease company shareholders after the damage caused by his “no Bitcoin” strategy. It is worth mentioning that Mr. Saylor has served as the CEO of MicroStrategy since the company was founded.

As of the end of July 2022, MicroStrategy is holding a total of 129,699 Bitcoins, worth around $2 billion at an average price of $30,664/BTC. When the BTC price peaked in early November 2021, the entire Bitcoin was worth up to 8 billion USD, but “dissolved” to only about 2.96 billion USD at the time of writing. During the entire second quarter, the company also only “bottomed out” once with a purchase of $10 million in BTC on June 29, a sign that MicroStrategy may have “run out of money.”