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Michael Saylor Proposes Bitcoin Strategy to Microsoft
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Michael Saylor Proposes Bitcoin Strategy to Microsoft
Dec 2, 2024 4:23 AM

MicroStrategy’s Michael Saylor has made a pitch to Microsoft’s board of directors, proposing that the tech giant fully embrace Bitcoin.

In a three-minute presentation, Saylor outlined how Bitcoin could transform Microsoft’s financial strategy, potentially adding nearly $5 trillion to its market capitalization.

Financial Growth and Enhanced Shareholder Returns

“Microsoft can’t afford to miss the next technology wave, and Bitcoin is that wave,” Saylor declared. He described Bitcoin as the greatest digital transformation of the 21st century, labeling it a “digital capital” that is economically and technically superior to physical money.

Saylor emphasized that the Redmond-based software maker should embrace digital capital, arguing that investing in Bitcoin offers greater advantages than stock buybacks or holding bonds.

Highlighting Bitcoin’s potential, MicroStrategys Executive Chair projected it would grow to represent $280 trillion of global wealth within 20 years, surpassing gold and art. He pointed out that Microsoft’s adoption of the cryptocurrency would offer significant advantages.

Saylor urged the company to convert its cash flows, dividend payouts, stock buybacks, and debt into BTC, stating this move could add hundreds of dollars to its stock price and create trillions in enterprise value. Specifically, he predicted that Bitcoin could increase Microsoft’s stock price by up to $584 per share over the next decade, assuming its value reaches $1.7 million by 2034.

Currently valued at $3.18 trillion, Microsoft is the third most valuable firm globally. Saylor predicted that adopting Bitcoin could elevate its market cap by an additional $4.9 trillion.

He framed the decision as a choice between clinging to outdated financial strategies or using Bitcoin to drive accelerated growth. “It’s time for Microsoft to evaluate its BTC strategic options,” he said in closing. “Do the right thing for the world and adopt Bitcoin.”

Saylor Says He Can Convince Buffett to Buy Bitcoin

Microsofts board of directors isnt the only one Saylor is targeting as he continues his Bitcoin evangelism. In a recent appearance on the PBD Podcast, the BTC bull expressed confidence in his ability to convince Berkshire Hathaway’s Warren Buffett to embrace the cryptocurrency.

“I’d be willing to bet you that if I had an hour alone with Buffett in a calm environment, I’d walk out, and he would say this Bitcoin thing is a pretty good idea,” he stated.

Highlighting what he described as inefficiencies in Berkshire’s $325 billion cash reserve, Saylor argued that the funds generate just a 3% after-tax yield while facing a 15% cost of capital. He claimed this results in a 12% negative real yield and an annual shareholder value erosion of $32 billion.

The 59-year-old has consistently promoted Bitcoin as a hedge against inflation and currency devaluation, urging companies with substantial cash reserves to integrate it into their financial strategies.

This approach has gained popularity among several organizations, including Metaplanet, with 1,142 BTC, and Semler Scientific, which recently invested $29 million in BTC. Online video platform Rumble also recently announced a $20 million investment in the coin. However, MicroStrategy remains the largest publicly traded Bitcoin holder, with nearly 387,000 BTC reserves.

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