Michael Saylor Stepped Down As MicroStrategy’s CEO Following A $1 Billion Loss
Michael Saylor is undoubtedly the biggest Bitcoin fan known in the cryptocurrency industry and has for long shown why he is so.
But then, the crypto market bloodbath is no respecter of personality, as Michael Saylor found out after his company, MicroStrategy, recorded huge losses for the Q2 of the year.
As a result, Saylor has announced his decision to step down as the CEO of MicroStrategy following the loss of $1 billion the company experienced under his management.
MicroStrategy’s Market Loss
According to reports, of the $2 billion loss, $917.8 million is the total loss incurred on impairment charges triggered by the slump in the price of BTC.
The company announced that, as of last month’s end, it had 129,699 BTC tokens worth $1.988 billion on its balance sheet. It is worth noting that the company has been steadily accumulating Bitcoins as far back as 2020.
Furthermore, the loss reflects what has befallen the broader crypto market, where many major tokens have slumped amid spiraling digital asset prices.
This is by no means a statement that Saylor has no business left with MicroStrategy after stepping down. However, he will be serving as the executive chairman of MicroStrategy, where he will focus on the company’s Bitcoin acquisition plan.
Saylor will now channel his attention to amassing massive cryptocurrency stashes to beef up the company’s reserve assets. Saylor is a popular Bitcoin maximalist who always projects the bullishness of the flagship cryptocurrency.
He believes that Bitcoin’s price decline is nothing compared to the future price forecast of the largest digital currency.
MicroStrategy’s Short Bet is Unlikely to Spike
The Bitcoin correction that happened this year has placed the Nasdaq-listed stock of the company under intense pressure. However, Bitcoin supporters are backing the short bet put in place by Saylor to surge.
Some analysts on Wall Street do not believe that this is the best strategy for a publicly listed firm to recover from a major market setback.
According to the latest Bloomberg report, MicroStrategy’s short bet has increased significantly. In addition, the Nasdaq stock has experienced a modest rebound following the positive price sentiment of Bitcoin last month.
Critics still affirm that the surge is temporary as the modest gains will likely peter out.
Bitcoin’s price performance will determine the next direction of MicroStrategy’s revival as the firm is a BTC-centric business. The company has a huge war chest of Bitcoin tokens, which the former CEO has helped accumulate since the summer of 2020.
Not surprisingly, going by the business model of MicroStrategy, the low price of Bitcoin has and will continue to pose problems for the company’s finances. The debt servicing is something that MicroStrategy will struggle to handle, and it will be tricky to see how it goes.
Meanwhile, for the company to make headway, it has to avoid selling its BTC tokens at a loss because it is currently taking huge Bitcoin losses.
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