Michael Saylor has been the CEO of MicroStrategy Incorporated MSTR since he founded the company in 1989. That is, until Tuesday, when the company announced that Saylor would be stepping down as CEO.
Phong Le, MicroStrategy’s president, will step in as CEO to replace Saylor.
MicroStrategy posted a whopping 1,176.62% earnings miss, reporting earnings per share of negative $92.81 against an estimate of a $7.27 per share loss, according to Benzinga Pro.
The Backdrop: Saylor gained notoriety on social media throughout the last few years for his steadfast, and some would argue reckless, purchases of Bitcoin BTC/USD.
According to Coindesk.com, MicroStrategy owns nearly 130,000 Bitcoin worth about $3 billion. At least some portion of MicroStrategy’s Bitcoin purchases were made using debt.
Related Link: Betting Against Bitcoin And Michael Saylor: Could MicroStrategy See A Short Squeeze?
Saylor says the switch will allow him to focus on MicroStrategy’s Bitcoin acquisition strategy.
“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 in a statement. "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."
MSTR Price Action: The stock is trading slightly lower after hours after closing Tuesday's regular session 0.91% higher at $278.26.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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