microstrategyMichael Saylor steps down as CEO to become the company’s executive chairman. according to the statement released by the company on Tuesday afternoon. Company President Fong Le will take the reins from Sailor.
Sailor has served as CEO since the company’s founding in 1989. MicroStrategy went public in 1998.
MicroStrategy’s stock has fallen more than 48% this year. bitcoin decreased by more than 51% over the same time period.
“I believe that separating the roles of chairman and CEO will allow us to better execute our two corporate strategies of acquiring and holding bitcoin and growing our enterprise analytics software business. 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 overall corporate operations,” said Mr. Sailor in release.
The announcement comes as the company announces earnings for its second quarter, in which its total revenue fell 2.6% year-over-year. The company also posted a $918 million loss on the value of its digital assets, presumably primarily Bitcoin.
Technically, MicroStrategy can do enterprise software and cloud services, but Saylor said the publicly traded company is the first and only bitcoin US spot exchange-traded fund
“We’re kind of like your defunct spot ETF,” Saylor told CNBC on the sidelines of the Bitcoin 2022 conference in Miami in April.
So far, the Securities and Exchange Commission has only approved ETFs that track contracts speculating on the future price of bitcoin, not on the cryptocurrency itself. The Commission has refused to give the green light any of the formal applications for a pure bitcoin-based ETF is a financial instrument that would give investors the opportunity to invest in bitcoin without having to go through the process of registering on an exchange, opening a crypto wallet, or dealing with any other logistics associated with buying and holding bitcoins.
“If there was a spot ETF, you would pay a fee of 1% and it would not use leverage. With MicroStrategy, we have a software company that generates cash flow, so we convert our cash flow into bitcoin,” he said. Sailor in April.
MicroStrategy has been adding Bitcoin to its corporate balance sheet for the past two years. The company is currently spent about $4 billion acquisition of bitcoins at an average price of $30,700.
MicroStrategy used the company’s debt to buy bitcoinsand in March, Saylor decided to take another step toward normalizing bitcoin-backed finance when he borrowed $205 million using his bitcoin as collateral – buy more cryptocurrencies.
“We have a pledge of $5 billion. We borrowed $200 million. So I don’t encourage people to go and take out a highly leveraged loan. I think I am doing my best to pave the way and normalize the bitcoin-backed financial industry,” Saylor said in April.
“If people realize that they can borrow something on bail, then they realize that they will never have to sell it, and then they start stretching their time horizon from – “This is a 36-month speculation” to – “This is a 36-year holding”. ‘”