Phong Le News

Business intelligence firm MicroStrategy has notched a paper gain of $900 million on its stack of 158,400 Bitcoin, spurred by optimism over the potential approval of spot Bitcoin exchange-traded funds.

Bitcoin maximalist and co-founder of MicroStrategy, Michael Saylor, is stepping down as a CEO. He will be executive chairman of the software firm, focusing solely on Bitcoin.Saylor has transferred the responsibility to his deputy Phong Le, the company's current president. Following his departure, the company's shares (NASDAQ: MSTR) soared nearly 15% on August 3.

MicroStrategy (MSTR) stock opened higher on Aug. 3 as investors digested the news of its CEO Michael Saylor's exit after a depressive quarterly earnings report.

MicroStrategy CEO Michael Saylor said he would step down from the top job next week and assume the role of executive chairman, as his company reported a loss of $1.06bn in the second quarter.

Bitcoin maximalist Michael Saylor has announced that he will step down as the chief executive officer of MicroStrategy, the business intelligence firm he helped co-found in 1989.

MicroStrategy Inc. began buying Bitcoin in bulk in the summer of 2020, CEO Michael Saylor said it was because inflation would make cash worthless. The crypto pile he has since accumulated was worth $3.4 billion less at the end of the second quarter than the previous one. Technically, the decline is yet another paper loss for the enterprise software maker under US accounting rules until any of the Bitcoin is sold, but there are consequences. MicroStrategy will likely need to take a substantial impairment charge when it reports second-quarter results. And for shareholders, the stock tumbled 66% in the quarter ended Thursday, outpacing Bitcoin’s 59% decline. Saylor has downplayed any concerns, sticking to the strategy and adding to his stockpile last quarter as Bitcoin experienced its biggest price drop in more than a decade. MicroStrategy noted at the end of June that it would report results as normal later in the coming quarter even though Wall Street regulators typically require companies to flag big losses much earlier.

MicroStrategy’s bank account now holds 129,218 Bitcoins. In fact, some believe the firm may be obliged to liquidate or pledge a significant portion of its Bitcoin reserves as collateral as a result of Bitcoin’s price fall.

cryptocurrency markets on edge. MictroStrategy, an aggressive investor in bitcoin, said it borrowed $205 million from crypto bank Silvergate Capital in March, with the three-year loan mostly secured against some 19,466 bitcoins. If the bitcoin price dropped below about $21,000 that would trigger a «margin call» or a demand for extra capital, MicroStrategy President Phong Le said in webcast in May.

MicroStrategy scotches 'margin call' fears, says can withstand volatility

Bitcoin (BTC) lost the $28,000 support on June 12 following worsening macroeconomic conditions. The United States Treasury 2-year note yield closed on June 10 at 3.10%, its highest level since December 2007. This shows that traders are demanding higher rates to hold their debt instruments and expect inflation to remain a persistent challenge.

Bitcoin (BTC) saw classic “choppy” price action on May 4 with hours to go before fresh Federal Reserve cues.

Several financial institutions have had a complicated relationship with the cryptocurrency since Bitcoin emerged to take centerstage in the global economy. Over the years, however, BTC has been fairly successful in fostering institutional adoption across the globe.