MicroStrategy Stock Outpaces Bitcoin Fall, Saylor Loses $3.4 Billion

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Last Updated on 3 July 2022 by CryptoTips.eu

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / [email protected]
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In the summer of 2020, MicroStrategy CEO Michael Saylor instructed his finance department to start buying Bitcoin in bulk, claiming that growing inflation would render cash basically worthless.

He was right about the last part, but not so much about the first part. Bitcoin grew from $10k all the way to $69k and Saylor was seen as a visionary. His company kept buying more Bitcoin, for an average price of $30k.

As Bitcoin fell, so did the stock of MicroStrategy.

With a current price point around $19k, it means that the combined Bitcoins his company bought are now under water. Saylor’s company in fact took a $3.4 billion loss during the second quarter of 2022. Not yet comparable to the kind of money he lost during the DotCom bubble, but still a hefty sum.

Back in March 2000, Saylor lost more than $6bn of personal wealth in a single stock trading session as the company was forced to re-adjust its accounting and restated two years of revenue.

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Still a HODLer

There are those in the business world rooting for Saylor to go under again, but just as many are admiring him for not flinching now that Bitcoin lost already 70%. A true HODLer (hold on for dear life)

The 57-year-old software entrepreneur is a true believer, declaring earlier this week during a TV interview that:

Bitcoin represents the digital transformation of money, property, currency, energy, & matter. It is still at an early stage in its development and poorly understood.

His shareholders might be less forgiving though as MicroStrategy stock fell 66% in the second quarter, which was thus more than Bitcoin’s 59% decline. Problem for them is that Saylor (just like Zuckerberg at Facebook) holds a controlling vote over the shares.

Although the CEO of MicroStrategy owns only 20 per cent of the outstanding shares, he controls 68 per cent of the voting rights. Hence is Saylor says ‘Buy more Bitcoin’, that is all MicroStrategy will continue doing.

monticello / Depositphotos.com