Michael Saylor to step down as MicroStrategy CEO, shift to executive chairman role

Michael Saylor to step down as MicroStrategy CEO, shift to executive chairman role

August 3, 2022 0 By Adam Morgan McCarthy

Markets
o August 2, 2022, 4:16PM EDT

theblock

Quick Take

Michael Saylor is set to step down from his role as CEO and become an executive chairman.
MicroStrategy reported $122.1 million in revenues for the second quarter of 2022.

Michael Saylor is set to step down as CEO of MicroStrategy and assume a new role as executive chairman, the company’s earnings report revealed Tuesday.

The firm, which holds more than 129,699 BTC, said that revenues came in at $122.1 million for Q2, compared with $125.4 million in the second quarter of 2021.

Michael Saylor’s firm recently purchased an additional 480 bitcoin worth around $10 million at an average price of $20,817.

On the financial state of its bitcoin holdings, MicroStrategy said:

“As of June 30, 2022, the carrying value of MicroStrategy’s digital assets (comprised of approximately 129,699 bitcoins) was $1.988 billion, which reflects cumulative impairment losses of $1.989 billion since acquisition and an average carrying amount per bitcoin of approximately $15,326.”

The firm has consistently refused to alter its outlook on the digital asset, despite the price of bitcoin plunging below $30,000 in May, which meant MicroStrategy was in the red on its average purchase price. Indeed, CEO Michael Saylor believes the asset’s near-term volatility is largely irrelevant, he told The Block in June.

Speaking about the new role as executive chairman Saylor said that he “will be able to focus more on our bitcoin acquisition strategy and related bitcoin advocacy initiatives, while Phong will be empowered as CEO to manage overall corporate operations.”

Phong Le, the company’s president, will assume the role of CEO.

In its last earnings report, on May 3, the firm said it may conservatively explore future yield generation opportunities on unencumbered MacroStrategy bitcoins — a reference to its bitcoin-backed loan deal with Silvergate.

Shares in the computer software company traded down during after-hours trading, losing 2.86% at the time of writing.

Investment bank Jefferies downgraded MicroStrategy’s stock to underperform from hold last month, setting a price target of $180. The firm also forecasted total revenue growth of 4% – higher than the analyst consensus of 3% – but below the resulting report.

(C) 2022 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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