Michael Saylor, Chairman of MicroStrategy and a prominent advocate for Bitcoin, is set to deliver a brief pitch to Microsoft's board of directors, urging them to consider investing in Bitcoin. Saylor revealed that he has been granted just three minutes to make his case, during which he will outline how adding Bitcoin to Microsoft's portfolio could make the company’s stock more stable and less risky.
Set a reminder for this post-US election bombshell discussion with @SenLummis, @saylor, @matthew_sigel @JanvanEck3 as they dive into lessons from El Salvador’s Bitcoin experiment for the US, next steps for Senator Cynthia Lummis' BITCOIN Act (the strategic BTC reserve) and…
— VanEck (@vaneck_us) November 8, 2024
This proposal was initiated by the National Center for Public Policy Research (NCPPR), which praised MicroStrategy's Bitcoin (BTC) strategy. The organization highlighted that MicroStrategy’s stock has outperformed Microsoft significantly this year, despite being a smaller business. Saylor shared that he previously offered to discuss the matter privately with Microsoft CEO Satya Nadella, but his proposal for a confidential meeting was declined. Nevertheless, he plans to submit the pitch directly to Microsoft’s board.
Saylor argues that companies like Microsoft, Apple, and Google, with substantial cash reserves, are missing opportunities by not investing in Bitcoin. According to him, these companies are reducing shareholder value by failing to diversify their assets. He believes that allocating a portion of their enterprise value to tangible assets, such as Bitcoin, could enhance the stability and long-term value of their stocks.
Microsoft's board, which includes high-ranking executives from firms like Disney, Citigroup, and Wells Fargo, has recommended voting against the proposal. They assert that they already evaluate a broad range of investment options, including Bitcoin. However, the vote on this shareholder initiative will take place on December 10, and it could force Microsoft to publicly justify any decision against Bitcoin investment.
Saylor insists that Bitcoin can make Microsoft’s stock less risky by anchoring some of its value in tangible assets. He estimates that 98.5% of Microsoft’s valuation is tied to quarterly earnings, leaving only 1.5% linked to physical assets. Incorporating Bitcoin, he claims, would provide a stronger foundation and improve shareholder confidence.
While Microsoft's leadership has expressed skepticism, the proposal is sparking a broader conversation about how major corporations manage their cash reserves. If successful, Saylor's pitch could inspire other large companies to consider Bitcoin as a viable investment option, potentially reshaping corporate finance strategies.
