In a three-minute presentation to the Microsoft (MSFT) Board of Directors and CEO Satya Nadella, Michael Saylor—a well-known Bitcoin advocate and Executive Chairman of MicroStrategy—explained why the firm should use Bitcoin as a reserve asset.
The Case for Bitcoin Adoption by Microsoft: Saylor
Saylor, who was asked to share his thoughts, stressed how important it is to use the main cryptocurrency as a foundation of contemporary financial strategy. Earlier in his presentation, Saylor made the bold claim that Bitcoin represented the next technological wave that Microsoft could not afford to ignore. The biggest digital revolution of the 21st century is Bitcoin, he went on to say. The term "digital capital" describes it.
The division between assets devoted to preserving capital and those that provide utility was brought to light by Saylor when he delved into the mechanics of global wealth distribution. He went on to clarify that although certain assets contribute to global wealth via utility and others through capital preservation, the danger is that it destroys billions of dollars worth of capital annually.
According to Saylor, "Digital capital is economically and technically superior to physical capital, and it represents a revolutionary advance in capital preservation." This means that BTC is better than conventional ways of preserving capital. "The asset class itself is growing from trillions to hundreds of trillions of dollars and it is backed by digital power along with political and economic power," he said, foretelling Bitcoin's meteoric rise as an asset class.
Saylor presented a compelling argument for Bitcoin's important role when discussing the strategic financial choices that major companies like Microsoft encounter. Being fueled by digital money makes perfect sense for Microsoft. Among all assets, bitcoin is the most valuable. "The numbers speak for themselves," he said without reservation.
Investment in Bitcoin, he said, "makes a lot more sense than buying your own stock back or holding Bitcoin rather than holding bonds if you're going to outperform." He drew a comparison between Bitcoin and more conventional corporate financial strategies. Your options market and equities liquidity are being undermined by those bonds, and Bitcoin will be necessary for you.
Saylor also emphasized the growing backing from both institutions and governments, which strengthens its potential as a strategic asset. This is when your backup plan comes in handy. The president of the US advises 'never sell your Bitcoin,' and there is a groundswell of support for Bitcoin among the public, politicians, Wall Street, and the US Bitcoin strategic reserve.
Saylor characterized the present time as a revolutionary one, declaring, "We're entering year one of the crypto Renaissance and you have a choice to make: cling to the past or embrace the future."
Saying, "You've surrendered hundreds of billions of dollars of capital over the past five years and you've just amplified the risks that your own shareholders face," he warned against the financial stagnation linked with conventional investing practices.
I need an asset free of counterparty risk if I ever want to break free of that vicious cycle," he said. If you could acquire a 100 billion dollar firm that is expanding at a rate greater than Microsoft for a single payment, would you do it? Envision yourself able to accomplish it annually. Microsoft should assess its strategic alternatives on Bitcoin now.
On top of that, Saylor brought an open-source methodology to help Microsoft incorporate BTC into its financial processes. We've made our model publicly available so that anybody may use it and add their own assumptions. His explanation was that one may turn their cash flows, dividends, buybacks, and loans into Bitcoin.
"If you do that, you'll add hundreds of dollars to the stock price," he said, predicting large financial gains from the integration. Enterprise value may be created to the tune of billions of dollars. Eliminating risk for shareholders and achieving success on the Bitcoin standard are both possible. Therefore, embrace Bitcoin; it's the moral thing to do.
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