MicroStrategy executive chairman Michael Saylor recently presented a three-minute pitch to Microsoft’s board, urging the tech giant to incorporate Bitcoin into its strategy. Saylor emphasized the importance of Bitcoin in the upcoming technological revolution and warned that Microsoft could fall behind competitors if it fails to embrace this digital asset.
Highlighting Bitcoin’s impressive performance, Saylor pointed out that it has consistently outperformed Microsoft’s stock, delivering ten times higher returns annually. He suggested that reallocating resources from stock buybacks to Bitcoin investments could result in greater value generation for the company.
According to Saylor, Microsoft’s current treasury strategy is negatively impacting its equity and options markets, undermining its position as a store of value. He shared a visual representation of Microsoft’s current equity performance to support his argument.
Saylor also outlined a vision for the Bitcoin ecosystem in 2025, predicting widespread adoption of Bitcoin ETFs on Wall Street, favorable accounting regulations, supportive crypto legislation, and a shift in regulatory attitudes towards cryptocurrencies. He emphasized the significance of embracing Bitcoin in this evolving landscape.
He stated:
“You have a choice to make: cling to the past, or embrace the future. Divest billions of dollars and slow your growth rate, invest billions of dollars and accelerate your growth rate.”
$5 trillion Potential Addition to Microsoft’s Market Cap
In his presentation, Saylor projected that an aggressive Bitcoin strategy could potentially add $5 trillion to Microsoft’s market capitalization over the next decade. He proposed converting cash flows, dividends, and stock buybacks into Bitcoin, which he believes would increase the company’s stock price significantly while reducing shareholder risk.
Based on his projections, if Bitcoin reaches $1.7 million per coin by 2034, Microsoft could gain $4.9 trillion in enterprise value.
Saylor recommended investing $100 billion annually in Bitcoin instead of traditional stock repurchases or bonds, highlighting Bitcoin’s advantages as an asset with minimal counterparty risk, high security, and significant growth potential.