ABC of Cryptocurrencies

Strategy's CFO Quits the Same Week the Company Posts a Record Quarter

Strategy's CFO Quits the Same Week the Company Posts a Record Quarter

Strategy, the largest corporate holder of bitcoin, disclosed on Thursday that its chief financial officer, Andrew Kang, is leaving. He will step down on November 5, according to a filing, after telling the company on October 26 that he planned to resign for personal reasons. The company said the decision did not stem from any disagreement over operations, policies or practices, and Kang will stay on as an adviser through the end of the year.

The timing is awkward, because the numbers released alongside the news were strong. Strategy reported roughly $21 billion in operating income for the third quarter and said it had raised $21 billion in capital so far this year. As of October 25 it held 848,517 bitcoin, up 26% since January. Investors focused on the departure anyway. MSTR shares dropped 6.4% in pre-market trading on Friday, while bitcoin lost 3.3% over 24 hours. The company's STRC preferred stock held steady at $99.45.

The handover will not be a simple one-for-one replacement. Reza Virasteh, currently executive vice president of operations, takes over on January 1 as co-principal financial officer, working alongside President and CEO Phong Le. Le keeps the parts of the job tied to the bitcoin business. He will retain oversight of bitcoin strategy, capital markets, treasury and investor relations, while Virasteh mainly handles the finances and budget of the company's software operations. In effect, the finance role is being split into a bitcoin treasury side and a software side.

Buying has not paused. Strategy added 811 BTC for $65.5 million in the days after the filing, lifting its total to 849,327 BTC.

A separate decision on the calendar may matter more to the stock than the CFO news. MSCI finalized new rules for companies that mostly hold non-operating assets, taking effect with its November index review, and Strategy was flagged in an earlier simulation as a company the rules could affect.

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ABC of Cryptocurrencies
ABC of Cryptocurrencies

ABC of Cryptocurrencies is a blog about the crypto market — written for people who want to actually understand what's going on, not just follow the noise. You'll find market news, breakdowns of how different assets and mechanisms work, and an occasional honest opinion on where things are heading. The goal is simple: cut through the complexity without dumbing it down.

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