Simply Bitcoin: Michael Saylor Steps Down as CEO, Bitcoin in Trouble?
Bitcoin has attracted plenty of attention as a new asset class. While many companies have started to look at integrating Bitcoin payments, only a handful have held the asset on their books.
Outside of Bitcoin mining companies, tech intelligence firm MicroStrategy (MSTR) has embraced the cryptocurrency. The company now holds over 129,000 Bitcoin, and has used debt to build that stake.
This week, the company reported a nearly $1 impairment on its Bitcoin holdings, and that its CEO, Michael Saylor, is stepping down as CEO.
Markets haven’t minded the news. That’s because Bitcoin currently has to be marked to its market value every quarter. So while the company is sitting on a loss, in the future it could be market far higher. Given Bitcoin’s long-term prospects to trade in the six-figure range, investors easily overlooked the move.
And Saylor is leaving the CEO role to take on the role of Chairman. In that role, he’ll have less say in the company’s day to day operations, but expects to continue to share his rationale for holding Bitcoin. He expects to entice other executives to start holding Bitcoin on their balance sheets as well.
A mass move by corporations to diversify their assets into Bitcoin could help spur the next move higher for the cryptocurrency.