On December 1, Saylor, who has long supported Bitcoin, pitched his proposal. He said Bitcoin was the entity that drove the next technological revolution and urged Microsoft to take heed.
During his presentation, he said, “Of course, Microsoft can not afford to miss the next technology wave, and Bitcoin is that wave.”
Saylor said Microsoft should instead send its cash flows, dividends, share buybacks, and debt toward Bitcoin. But he argued that such a bold move by the company, launching a stock repurchase that could bring hundreds of dollars in price to Microsoft stock, could pay off handsomely for shareholders.
“The result could be trillions of enterprise value and removal of shareholder risks,” he said.
According to Saylor’s analysis, if Bitcoin shot for a projected $1.7 million in value by 2034, Microsoft’s stock price could rise to as much as $584 a share within the next decade. Investing the amount of cash it has in the cryptocurrency could catapult Microsoft’s market cap to $4.9 trillion.
My 3-minute presentation to the $MSFT Board of Directors and @SatyaNadella, articulating why the company should do the right thing and adopt #Bitcoin. pic.twitter.com/aHp91V9Slz
— Michael Saylor⚡️ (@saylor) December 1, 2024
Microsoft is the world’s third-most valuable firm after Nvidia and Apple, with a current worth of $3.18 trillion.
Bitcoin’s Resurgence raises optimism
Bitcoin is experiencing a very strong rebound, and Saylor offered his proposal. Over the last month alone, the cryptocurrency has seen a 40 percent increase and sits just 2 percent shy of the $100,000 mark, up 120 percent this year.
As a pioneer of Bitcoin adoption, Saylor has led MicroStrategy from the perspective that Bitcoin adoption pays off. Since 2020, the company has bought 386,700 Bitcoins at $21.9 billion. The investment valuation is about $37.6 billion, with Bitcoin trading at $97,200.
MicroStrategy’s shareholders have benefitted greatly from this strategy, as the company’s stock has surged 465.5% so far this year to an all-time high of $421.88 in November.
Saylor also put the rise in public and political support of Bitcoin down to a ‘crypto renaissance.’
U.S. President-Elect Donald Trump made pro-crypto comments, saying major Wall Street firms should invest in Bitcoin investment products.
In his proposal, Saylor suggested that ‘Microsoft should allocate $100 billion a year to Bitcoin investments’. Bitcoin is a more lucrative alternative to traditional strategies like stock buybacks or holding bonds, he points out.
He noted Bitcoin’s potential as a high-growth asset, asking, ‘What if you could buy a $100 billion company growing as quickly as Microsoft for one-time revenue?’
Saylor’s proposal to Microsoft fits into a larger trend of institutional interest in Bitcoin. Brazilian Congressman Eros Bionidini recently introduced a bill requiring the nation to set up a Bitcoin reserve, seeing as up to 5% of Brazil’s international reserves, worth $372 billion, could be allocated to the new currency.
At the same time, Texas lawmakers are looking at setting up a strategic Bitcoin reserve, according to advocacy group Satoshi Action Fund.
“(The message) got cut off because I didn’t want to end with a plea for Microsoft to take the lead in adopting Bitcoin,” Saylor concluded his pitch with an urgent appeal for Microsoft to lead the charge in adopting Bitcoin.
He said it is time for Microsoft to evaluate its strategic options for Bitcoin. ‘Adopt Bitcoin.’
But as Bitcoin’s upward surge and growing institutional interest continue to escalate, Saylor’s vision may prompt other tech titans to reconsider their cryptocurrency strategies.
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