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As Michael Saylor steps down, President Phong Le will be taking over the mantle as the new CEO at MicroStrategy. Meanwhile, Saylor will be assuming the role of Executive Chairman to focus on Bitcoin strategy solely.
Business intelligence company MicroStrategy (NASDAQ: MSTR) popped almost 15% on August 3rd on news that Michael Saylor would be exiting his role as CEO. According to the daily chart, the company added about 14.5%to $324.55 per share. The price gain represents its highest level since May 6th. The intraday stock increase was part of the broader recovery which started on May 12th. At the time, MicroStrategy stock was trading around $134. However, the company has advanced 142% between then and now.
In addition to Michael Saylor stepping down, MicroStrategy also rallied as Bitcoin gathered modest gains. The top crypto asset has added 1.21% in the last 24 hours to trade a little over $23,000.
Phong Le Takes Over from Michael Saylor as MicroStrategy CEO
As Michael Saylor steps down, President Phong Le will be taking over the mantle as the new CEO at MicroStrategy. Meanwhile, Saylor will be assuming the role of Executive Chairman to focus on Bitcoin strategy solely. As the changes take effect from August 8th, the exiting CEO said splitting the Chairman and CEO roles will enable the company to better pursue its two corporate strategies independently. According to Michael Saylor, MicroStrategy’s two corporate strategies include acquiring and growing Bitcoin and its enterprise analytics software business.
On the other hand, the incoming CEO said investors should not expect a new strategy. Le said the development is not a” business-as-usual transition” as he has always been working with Saylor on the enterprise and business strategy.
Phong Le combined the roles of President and CFO between July 2019 and May 2022, after which he began to serve as the President in May. An equity research analyst with Canaccord Genuity, Joe Vafi, believes that the executive changes have been underway. Vafi said the transition has been in process since Le became President in 2019. The analyst rates MicroStrategy stock a buy, although he reduced his price target from $453 to $372.
MicroStrategy’s Bitcoin Stance
MicroStrategy started buying Bitcoin in August 2020 under the leadership of Michael Saylor. Since then, the company has been amassing more BTC as part of its primary reserve asset. As of June 30th, the company said it had over 129,699 Bitcoin, equaling about $2 billion. While the business intelligence firm recorded losses on its Bitcoin investment, the company maintained its bullish stance. Michael Saylor said MicroStrategy will “continue to HODL through adversity.” He added that the company had structured its balance sheet in preparation for volatility.
Currently, MSTR is down 2.455 to $306 at after-hours trading. The Nasdaq-listed firm has also shed over 53% over the past year and another 42.39% in its year-to-date record. Additionally, MicroStrategy stock has declined 14.40% in the last three months. However, the company has pumped 66.59% over the past month. With a market valuation of $3.14 billion, the business intelligence market has increased 19.54% in the last five days.