MicroStrategy Stock Reaches Three-month High

MicroStrategy Stock High

Enterprise analytics firm MicroStrategy, has hit a three-month high in its stock value after the firm announced its reshuffling of leadership roles this week.

According to daily price charts, MSTR’s price has increased by up to 14.5% – $324.55 per share, its highest since May 6, 2022. 

The surge came after MicroStrategy announced soon-to-be former CEO Michael Saylor’s new position in the firm, following the company’s quarterly earnings report, published on the firm’s website. Saylor will now assume the position of Chairman.

“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,” said Saylor, regarding the decision of assigning himself as Chairman. 

Saylor will also continue to serve as head of the investments committee, chairman of the board of directors, and will continue to lead MicroStrategy’s Bitcoin acquisition strategy. 

MicroStrategy’s current president, Phong Le, will take on the role as CEO. Le hasbeen in the President role since May, 2022.

In its Q2 2022 financial report, MicroStrategy publicised that its digital asset impairment loss for the quarter is $917.8 million. However, the company insisted that it is not considering selling its crypto assets any time soon.

MicroStrategy notes that its core business is insulated from Bitcoin price volatility, with no near-term debt maturities. The firm has stated that it has sufficient liquidity to cover interest payments, through cash flows generated at software business.

The financial report has also noted that the firm’s stock price has enjoyed a +123% increase in value from August 10, 2020 – in line with its adoption of Bitcoin acquisition strategies. 

The report also cites key assets and like BTC at +94% and S&P 500 at +23% for comparison, to reflect the company’s growth over the last two years. Other big tech stocks with crypto projects were also cited, with GOOG at +54%, AMZN at -14%, and META at -39%. 

As of writing, MicroStrategy currently owns 129,699 BTC – the current purchase value of the company’s Bitcoin reserves are worth nearly $4 billion – with each Bitcoin valued at $30,664. 68% of the Bitcoin held are unencumbered, while 34% are pledged.

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