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MicroStrategy’s 129,699 BTC Trove Not For Sale After CEO’s Exit

MicroStrategy’s 129,699 BTC Trove Not For Sale After CEO's Exit

MicroStrategy’s CEO, Michael Saylor, has stepped down, but the company will continue to acquire and hold Bitcoin (BTC).

Michael Saylor

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.

BTC daily chart. Source: CoinCu

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.

MSTR price chart. Source: TradingView

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.

MSTR long-term debt table. Source: S&P Capital IQ

In other words, the company could pledge its nearly $2 billion worth of Bitcoin holdings as collateral or sell them to raise capital.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Harold

CoinCu News

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.