The stock price of Microstrategy is now recovering at a better rate because of the stepping-down decision of Michael Saylor from the role of Chief executive officer.
Microstrategy is a business intelligence firm. Exchange accumulated a total of 129,218 BTC for $3.967 billion. Under the leadership of Michael Saylor, the company added Bitcoin to its reserved balance sheet but due to a significant correction in the price of Bitcoin, the company faced a huge loss. In July, Microstrategy published its earnings report and showed that the company lost $1.062 billion because of the downfall in the price of Bitcoin.
As we know Michael Saylor is the founder of Microstrategy and also he was CEO a couple of days ago. According to media reports, the majority of the Microstrategy (MSTR) stockholders were against Saylor because the company lost much because of Bitcoin. In short, MSTR stockholders criticized Saylor and raised questions about the company leadership.
Now Saylor’s position responsibility is under the hand of Phong Le, the company’s current president. And Saylor is the only executive chairman of the software firm. He will now focus mainly on Bitcoin.
After the decision of Saylor to quit his role as CEO, on 3 August, MSTR’s price soared rapidly to around 15%. Today the current price of MSTR is $313.18 and this price is 20% high over the last 5 day’s trade price.
Microstrategy to use Bitcoin holdings
No doubt that the Bitcoin accumulation plan of former Microstrategy CEO Saylor is better for the long term but here company needed to understand that fluctuations in the price of Bitcoin may not always result in a positive outcome for the company. Here company needed to use its Bitcoin holding to generate extra income.
In the past, Saylor said that the company have no plans to sell Bitcoin, and also Saylor personally believes that Bitcoin is not made to trade.
Once, Saylor said that company may plan to give this Bitcoin as liquidity for other company(s) to generate extra revenue or will develop its own platform to bring new use cases of Bitcoin.