Michael Saylor lost a lot in the Dot-Com Bubble and Bitcoin Crash.  Now he aims to recover again

Michael Saylor lost a lot in the Dot-Com Bubble and Bitcoin Crash. Now he aims to recover again

Michael Saylor dropped nearly $1 billion on his Bitcoin (BTC) bet and just resigned as CEO at MicroStrategy (MSTR), the software company he founded in the 1980s.

Being trapped is a familiar thing to 57-year-old Saylor. After the dotcom bubble burst in March 2000, CNBC host Jim Kramer pointed to the collapse of MicroStrategy as a catalyst. The stock plunged 62% in a single day after MicroStrategy reported accounting errors, wiping out $6 billion from Saylor’s fortune and bringing a landmark end to the early Internet’s soaring days. Later that year, the US Securities and Exchange Commission filed, and then settled, accounting charges against MicroStrategy, Saylor and other company executives.

Then Saylor and Microstrategy spent two decades mostly under the radar of Wall Street. Not that he was suffering. MicroStrategy has continued to deliver, developing software for businesses. Saylor lived in a mansion in Miami Beach, Florida, which resembles a Spanish colonial mansion. A recent visit by a CoinDesk reporter revealed colorful cherubs on the hallway ceiling, gold plates and crimson wallpaper in the dining room, a stage outside the office library filled with guitars and drums and whatever else the band might need, and a picture. From Saylor in the style of an old English sailor – with laser eyes. A yacht was floating aft, where the crew lived full time so Saylor could travel whenever he wanted.

What brought Saylor back to center stage was bitcoin. His fear of inflation in 2020 prompted him to start investing his MicroStrategy funds in the original cryptocurrency. The company’s cash flow is starting to head into bitcoin. He built into the pockets of Wall Street bankers by selling debt to raise money to buy bitcoin. In the process, he has boldly turned his dormant software company into a bitcoin vault. Overall, MicroStrategy has spent around $4 billion on digital assets. MicroStrategy stock has become a proxy for holding bitcoin. The stock price is moving up and down at a steady pace with the movement of bitcoin.

He has become something of a bitcoin preacher who highly praises the religion. His great predictions included a prediction that Bitcoin would eventually be worth $100 trillion, roughly what all the stocks in the world are worth now combined.

“After studying everything scientifically on Earth, I have concluded that Bitcoin is the best inflation hedge,” he told CoinDesk during an interview in November at the Miami Beach mansion. “We buy bitcoin as fast as we can with whatever money we find around.” His Advice As Bitcoin Was Close To Its Record High? “If you have bitcoins, don’t sell them. If you don’t have bitcoins, buy them. If your bitcoins move, wait.”

Fast forward to today. MicroStrategy’s stock has lost about two-thirds of its value since it peaked last year, weighed down by the current bitcoin bear market. This week, Saylor handed over the CEO position to Phong Le, who was the head of MicroStrategy, and moved to the role of CEO, pledging to put all of his focus on bitcoin investing. He now runs an old software business.

Saylor was not immediately available for an interview for this story.

So who is Michael Saylor?

Saylor was born in Lincoln, Neb, to a military family, and grew up around bases. This included Wright-Patterson Air Force Base near Dayton, Ohio. He attended MIT on an Air Force scholarship and became a second lieutenant in the Air Force.

He launched MicroStrategy in his early 20s after persuading his employer, DuPont (DD), to give him $100,000 and free office space and computer equipment, he told Charlie Rose during an interview in February 2000. Saylor’s eccentricity was visible at the time, providing a glimpse of what was to come. with bitcoin.

“I think you’ll see over the next decade that people are going to use software to route traffic on every major highway,” Rose told 22 years ago. We will use it to decide which hospital to go to or which medication to take. We will use it to arbitrate all interest rate differentials in the finance market and get a better deal from our bank and possibly a better trade in the stock market.”

But he immediately noticed potentially serious downsides to the technology as well, about a month before his stock plunged. “If the program breaks, civilization stops in exactly the same way that if you shut down air traffic control at a major airport, traffic will stop dramatically,” Saylor told Rose, “and that’s the exciting thing about technology.”

Darren Feinstein, co-founder of the Bitcoin Mining Council, knows Saylor because the CEO of MicroStrategy helped form the advocacy group in May 2021.

“He’s a genius businessman,” Feinstein said in an interview after Saylor’s job change. “You say something and he already knows what you’re going to say,” Feinstein said, when asked how Saylor was doing during the meetings. “It works on a completely different level.”

After stepping down as CEO of MicroStrategy, some observers initially predicted that the bitcoin buying was over. They soon learn that this is not the case. Saylor intends to go deeper now that he is CEO.

“In my next job, I intend to focus more on Bitcoin,” Saylor chirp Early Wednesday.

Read more: Michael Saylor is Bitcoin’s Cyber ​​Hornet

Owen Ashraf contributed to reporting this story.

#Michael #Saylor #lost #lot #DotCom #Bubble #Bitcoin #Crash #aims #recover

Leave a Comment

Your email address will not be published.