For his part, Saylor survived civil accounting fraud charges brought by the SEC and is still the chief executive. Unlike many of the dot-com era’s highfliers that failed to generate revenue, however, MicroStrategy is not only still in business but is also growing and turning profits. It may have been expected that this triggered an investigation by the Securities and Exchange Commission, ultimately leading to a settlement for both the company and the executives (for the officers, it was the then- largest individual fine in SEC history not involving insider trading).įor almost every other dot-com company, a stock price drop like that would not have stopped add in the SEC settlement, and there’s a tried-and-true recipe for bankruptcy. The net income numbers that investors had fallen in love with in 19 were actually losses, and the eraser was put to $66 million of the $350 million revenue for the same period. The stock price’s sharp decline was the result of a major restatement of MicroStrategy’s earnings. Saylor’s historic loss was a result of MicroStrategy’s price per share free-falling $140 in a single day when it declined to $86.75 from the previous day’s close of $226.75. (whose clients now include Facebook and Starbucks), Saylor lost $6.1 billion of his reported $15 billion fortune. That day, as the CEO and majority shareholder of software company MicroStrategy Inc. More than 14 years later, it’s likely still fresh in his mind after all it’s not every day that someone incurs what is the greatest single-day hit to personal wealth in capital markets history. You may not remember where you were on March 20, 2000, but it’s a very safe bet that a man named Michael Saylor does.
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