It is happening people! Michael Saylor, the unofficial spokesperson of Bitcoin with a history of financial fraud has stepped down as CEO. And guess what, MicroStrategy is in deep trouble. The godfather of BTC, the alpha maximalist, the pilgrim of decentralization is now getting his soft demotion. And by soft we mean moving on to becoming an executive chairman role which is essentially a cool and calculated way to take the wheel off his hands. As Michael Saylor gives up the CEO position, the numbers show a horrible performance on his part. Perhaps, Saylor miscalculated just how much his Tweets could pump Bitcoin. Anyhow, MicroStrategy’s official statements are in typical nature of corporate language, smart yet hollow. But, unlike other news article, we’re going to read between their lines.
Michael Saylor, the Bitcoin CEO
According to a statement released by the company, Michael Saylor will leave his role as company CEO to become an executive chairman. As for his successor, the company president Phong Le will become the new CEO.
Saylor has been the chief executive since launching the company in 1989. This is an especially considerable news for one simple reason. Saylor has been the loudest voice for Bitcoin maximalism in the past few years. However, despite the successful investments during the pandemic, Saylor’s bullish attitude turned against the company.
This year, the leading digital asset Bitcoin is down 51% all while MicroStrategy stock is down 48%. Essentially, MicroStrategy is in the business of enterprise software and cloud-based services. But, Saylor lead the Bitcoin shopping frenzy during the past few years. A move that seriously backfired.
With Saylor gone, crypto has now lost two of its biggest proponents only in a few weeks. First it was the granddaddy crypto tourist Elon Musk who dumped all his Bitcoin overnight. And now, we have lost the one and only Michael Saylor.
Curb Your Earnings!
According to the company’s second quarter earnings report, they are facing an impairment charge of $918 million on the value of their digital assets. And by digital assets, the mean the one and only Bitcoin. Based on the report, the company’s total revenue dropped by 2.6% compared to last year.
“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. As Executive Chairman I will be able to focus more on our bitcoin acquisition strategy and related bitcoin advocacy initiatives, while Phong will be empowered as CEO to manage overall corporate operations,” said Michael Saylor in the release.
Buy Buy Buy
MicroStrategy has spent around $4 billion acquiring BTC at an average price of $30,700. BTC is trading at $23,000 at the time of writing this article. Basically, MicroStrategy has used its debt to buy more Bitcoin. Everything they did in the past two years was to buy more Bitcoin. Back in March, Saylor borrowed $205 million using his own Bitcoin as collateral to buy more Bitcoin.
“We have $5 billion in collateral. We borrowed $200 million. So I’m not telling people to go out and take a highly leveraged loan. What I am doing, I think, is doing my best to lead the way and to normalize the bitcoin-backed financing industry,” Said Mr. Saylor in April.
“As people realize they can borrow against something, then they realize they never have to sell it, and then they start to stretch their time horizon from — ‘It’s a 36-month speculation,’ to — ‘It’s a 36-year holding.’”
Perhaps, Michael Saylor anticipated a historically big rally right around the fictional corners of his mind. An endlessly bullish market that would only go up and move beyond the moon. What he didn’t’ expect was the mess that Do Kwon made or how Elon dumped BTC. Sadly, this is a story of faith, a kind of certainty that ignores the very face of reality. Now, Saylor is rich by any standard and will surely stay rich. In the meantime, his disgustingly misleading tweets will be immortally available on the internet. Telling the one-sided tale of how it could have been instead of looking at the world truthfully.