It’s no good being a Bitcoin maximalist in a bear market. Even if some of them do not hesitate to criticize the bad trend of the market to the rest of the altcoins, responsible for all the evils of this ecosystem. A position even more difficult to hold when it involves massive purchases of BTC by a company embellished with shareholders. As in the case of the famous MicroStrategy and its no less famous future ex-CEO Michael Saylor. A true community animator, whose posts on Twitter are almost exclusively about Bitcoin. Finally, a little less since he resigned from his post following a depreciation of this investment estimated at 918 million dollars.
The almost hysterical frenzy that sometimes surrounds Bitcoin investing is spreading far beyond the simple cryptosphere. Because during the last year, companies listed on the stock exchange have given themselves to this practice in order to garnish their treasuries with BTC. A good idea, quickly commendable in the heart of the bull market. But another story once the bear market has passed and the losses – even theoretical ones – are piling up. To the point of seeing the giant Tesla offload 75% of its bitcoin holdings just two weeks ago.
A critical situation that seems to be hitting hard the company MicroStrategy, which has become famous in the cryptocurrency ecosystem for its appetite for BTC. The latter, fueled to indigestion by its CEO Michael Saylor, was definitely very (too?) enthusiastic about offering everything related to Bitcoin. To the point of contracting a loan of 205 million dollars last March, in order to buy even more. Which allows it to hold more than 125,000 BTC, or $2.9 billion at its current price.. But the bear market has obviously been there…
MicroStrategy – Resignation of Michael Saylor
The information comes as no surprise, considering the current trend of massive reboots in the cryptocurrency industry. But she immediately becomes a little more so when it comes to the CEO of the emblematic company MicroStrategy. Because the latter has just made his CEO apron distinctly for the benefit of his colleague and former financial director Phong Le. And this in order to take a step back, while remaining at the head of the company’s investment committee as “executive chairman”. And explaining to shareholders that – of course – this reshuffling of roles was “a win for everyone involved”.
A decision that seems to come following the last call for the results of the second quarter of this year. And a depreciation of its Bitcoin portfolio estimated at $918 million, compared to the average purchase price presented at $30,664 per BTC. That is, an $8 billion bonanza in November 2021, when Bitcoin was hitting its last ATH. That is 2.7 times more than its current value ($2.9 billion).
At the same time, Michael Saylor wants to be reassuring to offer his multiple investments in Bitcoin. This by specifying first of all that the company MicroStrategy benefits from “guarantees more than sufficient to provide everything with prizes”. But also that “the will means that Bitcoin is more interesting, and therefore Microstrategy is more interesting”. Because, still according to him, “to want it is vitality”. Suffice to say that this change of function – voluntary or forced – does not seem to affect his determined maximalism without fault.
A change in direction that does not seem to affect MicroStrategy’s position vis-à-vis its Bitcoin holdings. Because its new CEO, Phong Le, claims that the company has not sold any of its BTC to date. A position presented as voluntary by the latter, during the last call for the results of the second quarter. But the more likely reason is undoubtedly more directly related to the losses it would entail due to its current price.
” MicroStrategy is one of a kind. We are the largest bitcoin holding company in the world. Our strategy is to buy and hold for the long term, and that’s it.”