What is important about Michael Saylor’s bet on Bitcoin?

Michael Saylor’s bet on Bitcoin has failed and he lost. The MicroStrategy CEO, also one of the biggest bitcoin bull, has decided to step down. When cryptocurrency lending platform Celsius froze user accounts amid a drop in valuations, waves across the industry raised questions about what could happen to user assets if a crypto platform files for bankruptcy.   

In 2020, the tech company struggled to compete with software giants. “We were either going to die a fast death, or a slow death, or embark on a risky strategy,” he said. Upon shakeup of MicroStrategy Inc.’s executive system, crypto traders are now forced to evaluate the consequences for bitcoin as Michael Saylor drops his long-held role.

MicroStrategy’s MSTR, +12.73% shares jumped almost 13% Wednesday, a day after the company said Michael Saylor would give up the CEO title and take on a new role as executive chairman.

The company’s president Phong Le will take on the CEO position starting Aug. 8. MicroStrategy reported a net loss of $1.06 billion in the second quarter, including $917.8 million in digital asset impairment losses, as bitcoin price crashed.

Phong will manage overall corporate operations while Saylor will “focus more on” the company’s bitcoin acquisition strategy and related bitcoin advocacy initiatives, according to MicroStrategy.