Michael Saylor proposes Bitcoin strategy at Microsoft

MicroStrategy’s Michael Saylor has made a presentation to Microsoft’s board of directors, proposing that the tech giant fully accept 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 improved shareholder returns

“Microsoft cannot afford to miss the next wave of technology, and Bitcoin is that wave,” Saylor said. He described Bitcoin as the biggest digital transformation of the 21st century, calling it “digital capital” that is economically and technically superior to physical money.

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

Highlighting Bitcoin’s potential, MicroStrategy’s executive chairman projected it would grow to account for $280 trillion of global wealth in 20 years, surpassing gold and art. He noted that Microsoft’s adoption of cryptocurrency would offer significant benefits.

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

Currently valued at $3.18 trillion, Microsoft is the third most valuable company in the world. Saylor predicted that Bitcoin adoption could lift its market capitalization by an additional $4.9 trillion.

He framed the decision as a choice between clinging to outdated financial strategies or using Bitcoin to fuel accelerated growth.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

Saylor says he can convince Buffett to buy Bitcoin

Microsoft’s board of directors isn’t the only one Saylor is targeting as he continues his Bitcoin evangelism. In a recent appearance on the PBD podcast, the BTC bull expressed his confidence in his ability to convince Berkshire Hathaway’s Warren Buffett to embrace the cryptocurrency.

“I’d be willing to bet that if I had an hour alone with Buffett in a quiet environment, he’d come out and he’d say this Bitcoin thing is a good idea,” he said.

Highlighting what he described as inefficiencies in Berkshire’s $325 billion cash pool, Saylor argued that the funds generate just a 3 percent after-tax return while facing a cost of capital of 15 %. He claimed that this leads to a negative real return of 12% and an annual erosion of shareholder value 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 various 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 holder of publicly traded Bitcoin, with nearly 387,000 BTC reserves.

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