MicroStrategy’s CEO, Michael Saylor, has stepped down, but the company will continue to acquire and hold Bitcoin (BTC).
In a new statement, MicroStrategy announces that Saylor will be its new executive chairman effective August 8 to focus on innovation and long-term corporate strategy. Saylor is assuming his new position as Bitcoin trades at just a third of its all-time high.
MicroStrategy currently owns 129,699 BTC, which the company bought for an average price of $30,664 per Bitcoin. The purchase value of the company’s BTC trove is nearly $4 billion, but as the flagship crypto asset trades for $22,800 at the time of writing, the Bitcoin acquisition is now worth just $2,960,000,000.
The company’s latest financial report says its digital asset impairment loss for Q2 of 2022 is $917.8 million. Despite this, MicroStrategy is not selling its crypto assets soon. In comparison, MSTR’s stock price plunged 42% in the same period.
MicroStrategy also has amassed $2.4 billion in long-term debts with $46.6 million in interest expenses. Therefore, the company could be unable to meet its debt obligations if it continues to suffer losses at the current pace.
In other words, the company could pledge its nearly $2 billion worth of Bitcoin holdings as collateral or sell them to raise capital.
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