MicroStrategy, a Nasdaq-listed business intelligence company (MSTR), has announced it will instate a new CEO this week.
Famously a Bitcoin advocate, Co-Founder, Chairman, and soon-to-be former CEO Michael Saylor has said that MicroStrategy’s CEO and chair roles would be a strategic advantage in “acquiring and holding Bitcoin.”
He added: “I believe that splitting the roles of Chairman and CEO will enable us to better pursue our two corporate strategies of acquiring and holding Bitcoin, and growing our enterprise analytics software business.”
The firm made the announcement via press release on Tuesday stating that Saylor would take the role of executive chair, while MicroStrategy’s president Phong Le will be assuming the role of CEO, effective August 8th. The press release also stated MicroStrategy’s Q2 2022 financial results.
Please join the @MicroStrategy management team at 5pm ET as we discuss our Q2 2022 financial results, executive transition, and answer questions about our business and outlook for #BusinessIntelligence and #Bitcoin. $MSTRhttps://t.co/SxAjhbM9WD
— Michael Saylor⚡️ (@saylor) August 2, 2022
From August 2015 to July 2019, Le served as MicroStrategy’s chief financial officer before combining CFO and company president responsibilities until May 2022, which marked Le taking on the role full time. In the company notice, MicroStrategy noted that Le will still continue his duties as president and CEO, including “handling day-to-day execution of the company’s corporate strategies.”
In a statement, Le said: “I’m honoured and excited to continue leading this truly innovative organisation, as President & CEO. Our people and our brand carry incredible momentum.
“I would like to reinforce our commitment to our customers, shareholders, partners and employees, and I look forward to leading the organisation for the long-term health and growth of our enterprise software and bitcoin acquisition strategies.”
Saylor – in his role as executive chair – will focus on Bitcoin acquisition strategies and “related Bitcoin advocacy initiatives.”
In August 2020, MicroStrategy announced via press release that it had purchased 21,454 bitcoins at a combined price of $250 million, with the intent to use it as a “primary treasury reserve asset.”
At the time, Saylor stated that MicroStrategy’s decision to invest in Bitcoin was “driven in part by a confluence of macro factors affecting the economic and business landscape that we believe is creating long-term risks for our corporate treasury program ― risks that should be addressed proactively.“
MicroStrategy has since continued to accumulate Bitcoin, with Saylor as CEO becoming one of Bitcoin’s most vocal advocates. The company’s latest Bitcoin purchase added an additional 480 bitcoins to its assets, with the purchase totalling approximately $10 million, according to a tweet from Saylor.
MicroStrategy has purchased an additional 480 bitcoins for ~$10.0 million at an average price of ~$20,817 per #bitcoin. As of 6/28/22 @MicroStrategy holds ~129,699 bitcoins acquired for ~$3.98 billion at an average price of ~$30,664 per bitcoin. $MSTRhttps://t.co/leQYTXn817
— Michael Saylor⚡️ (@saylor) June 29, 2022
Saylor has stated that MicroStrategy will “continue to HODL through adversity,” with regards to the crypto market slump in June 2022, where Bitcoin prices fell under $18,000.
Saylor also adds that MicroStrategy is prepared for market volatility, and has structured its balance sheets accordingly to accommodate for unpredictable changes in the market. Saylor also notes that through this strategy, the firm will be able to post collateral even “if the price of BTC falls below $3,562,” in reference to a market crash that happened briefly in March 2020.
