one of a few companies with large crypto holdings, named a new finance chief—a move that comes after the analytics-software firm said last week it would offer employees the option to invest 401(k) funds in bitcoin.
Tysons Corner, Va.-based MicroStrategy on Tuesday said
would serve as its next chief financial officer, effective on or about May 9. Mr. Kang, previously CFO of home-improvement lender GreenSky Inc., is set to succeed Finance Chief
Mr. Le, who has served in the role since July 2020, would continue as president, MicroStrategy said.
acquired in March, Mr. Kang worked as a corporate treasurer at Santander Holdings USA, a bank-holding company. He also held finance and treasury positions at several other banks.
On Tuesday, MicroStrategy reported revenue fell 2.9% to $119.3 million in the first quarter, compared with the prior-year period. Its net losses widened to $130.8 million for the quarter from $110 million during the year-ago period, in part due to an impairment charge related to the value of its bitcoins.
The company—alongside payment firm Block Inc. and auto maker
—is among a smattering of businesses with substantial bitcoin holdings. MicroStrategy said it held $2.9 billion of the cryptocurrency in book value as of March 31, up from $1.95 billion a year earlier.
Last month, the company said it purchased about 4,167 bitcoins for $190.5 million in cash between Feb. 15 and April 4, bringing its total holdings to 129,218 bitcoins.
A week ago, MicroStrategy said it would let its staff put part of their 401(k) retirement savings in bitcoin as part of a new offering from financial-services giant Fidelity Investments Inc.
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In letters made public in January, the Securities and Exchange Commission told MicroStrategy to revise the way it discloses its bitcoin holdings in future filings. The firm had been stripping out trading volatility in bitcoin when it used measures not defined under U.S. generally accepted accounting principles, or GAAP. Mr. Le had told the SEC that the inclusion of such impairment losses could distract from investors’ analysis of the company’s operating results, but the company amended its disclosures accordingly.
Mr. Kang has a strong finance background, but it will likely take some time for him to transition into the software world, said
a senior analyst at Jefferies Group LLC, a financial-services firm.
“His job will be to focus the company on the core operations rather than being distracted on bitcoin,” Mr. Thill said.