Bitcoin adoption could boost Microsoft's stock by $584/share and add $4.9T enterprise value.
Saylor positions Bitcoin as the key to mitigating risk and driving Microsoft's financial growth.
MicroStrategy's Bitcoin strategy led to a 465% YTD stock rise, fueling Saylor's bold projections.
MicroStrategy co-founder Michael Saylor has made a compelling case for Microsoft to embrace Bitcoin as a core part of its financial strategy. In a recent presentation to Microsoft executives, including CEO Satya Nadella and the board of directors, Saylor argued that adopting Bitcoin could significantly enhance Microsoft’s stock value and enterprise growth over the next decade.
According to Saylor, Bitcoin represents a pivotal technological shift, which he described as “the greatest digital transformation of the 21st century.” He urged Microsoft to consider cryptocurrency as a superior alternative to traditional financial strategies, such as stock buybacks and bond holdings.
https://twitter.com/saylor/status/1863323760511627565
Highlighting Bitcoin’s decentralized nature and lack of counterparty risk, Saylor emphasized its potential to mitigate risks for Microsoft’s shareholders while unlocking new opportunities for value creation.
Saylor presented a bold projection, asserting that integrating Bitcoin into Microsoft’s financial operations could add $584 to its stock price by 2034. He further estimated that such a strategy could generate an additional $4.9 trillion in enterprise value.
This forecast relies on Microsoft converting its cash flows, dividends, buybacks, and debt into Bitcoin, which Saylor claimed would position the company at the forefront of the next major technological wave.
Microsoft's stock, currently trading at $423.46, has seen a modest rise of 3.67% over the past month. Despite this steady growth, Saylor suggested that a Bitcoin-centric strategy could deliver unprecedented returns for the tech giant over the long term.
Saylor’s remarks are grounded in his own company’s experience with Bitcoin. Since 2020, MicroStrategy has aggressively accumulated Bitcoin, now holding 386,700 BTC valued at over $37.7 billion.
Last month, the company’s latest purchase of 55,500 BTC marked another milestone in its ongoing investment strategy. This approach has yielded significant results, with MicroStrategy’s stock price surging by 465% year-to-date.
Despite recent fluctuations, closing at $387.47 on Friday before gaining 2.15% in after-hours trading, MicroStrategy’s performance underscores Saylor’s belief in Bitcoin’s transformative potential.
