MicroStrategy reports a net loss of $900 million in Q2, Michael Saylor steps down as CEO to focus on being a full-time director and continues to buy coins.
The CEO of the US-listed company MicroStrategy, Michael Saylor, is a well-known Bitcoin enthusiast. The company's main business is software, but since 2020, it has also been buying Bitcoin with corporate assets and issuing bonds. On 8/2, MicroStrategy released a press release stating that CEO Michael Saylor will focus on his role as a board member and step down from the CEO position.
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MicroStrategy Q2 Bitcoin Losses Reach $1 Billion
- MicroStrategy's core business generated revenue of $122.1 million in Q2 2022, a 2.6% decrease from the same quarter last year. The gross profit was $96.9 million.
- The total cost of Bitcoin assets by the end of June was approximately $3.977 billion, with impairment losses amounting to around $917 million.
Michael Saylor Steps Down as CEO
In an announcement by MicroStrategy, Michael Saylor will focus on innovation and long-term strategy, while continuing Bitcoin acquisitions in his role as a board member; the position of CEO will be taken over by CFO Phong Le.
Michael Saylor stated that separating the roles of chairman and CEO will allow for better execution of the company's two strategies: acquiring and holding Bitcoin, and developing enterprise analytics software. "I will be able to focus more on Bitcoin acquisition strategies and related Bitcoin advocacy programs, while Phong will be empowered as CEO to manage the overall company operations."
MicroStrategy's stock price has grown compared to five years ago and since beginning to buy Bitcoin in 2020; however, it has dropped significantly by nearly 70% since the peak of the Bitcoin bull market.
Nevertheless, the Bitcoin enthusiast Michael Saylor still maintains that the company has significantly increased in valuation and the stock has seen substantial growth since adopting Bitcoin assets in 2020; Bitcoin continues to outperform many traditional assets.
In May of this year, MicroStrategy CFO Andrew Kang reiterated, "We will not be selling Bitcoin, and the strategy of long-term purchasing and holding of Bitcoin will not change."
