Home Business MicroStrategy Founder Michael Saylor Steps Down as CEO After Company Reports $900M in Crypto Losses

MicroStrategy Founder Michael Saylor Steps Down as CEO After Company Reports $900M in Crypto Losses

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MicroStrategy Founder Michael Saylor Steps Down as CEO After Company Reports $900M in Crypto Losses

MicroStrategy said co-founder Michael Saylor will no longer be chief executive and will assume the new role of executive chairman as the enterprise software maker reported a loss of around $1 billion in the second quarter, after taking an impairment charge of $917.8 million related to the decline in value of the Bitcoin he holds.

Saylor, who had made holding bitcoin on the Tysons Corner, Va.-based company’s balance sheet part of his business strategy, will focus on cryptocurrency acquisition strategy and related advocacy initiatives. Bitcoin fell 59% in the quarter and traded around 45% lower than the price at the end of the year-ago period. MicroStrategy President Phong Le will assume the role of CEO.

Revenue fell to $122.1 million. Analysts polled by Bloomberg had expected second-quarter revenue of $123.25 million. Net quarterly loss of $1.062 billion compared to a loss of $299.3 million in the same quarter last year.

Saylor has been CEO of MicroStrategy since the company was founded in 1989.

As of June 30, the book value of the company’s 129,699 bitcoins was $1.988 billion, the company said, reflecting the cumulative loss in value of $1.989 billion.

MicroStrategy started investing in Bitcoin in the summer of 2020 because Saylor viewed it as an inflation hedge.

MicroStrategy shares fell about 2.3% in post-trade trading. The stock is down around 50% this year, on par with the fall of Bitcoin.

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