Michael Saylor, chair of MicroStrategy and Bitcoin maximalist, has done it again. In an audacious pitch to Microsoft’s board of directors, he presented that Microsoft could add $5 trillion to its market cap if it fully adopted Bitcoin investment as part of its strategy. “If you do that, you’ll add hundreds of dollars to the stock price. You can create trillions of dollars of enterprise value. You can strip away risks from your shareholders.”
Saylor’s Vision for Microsoft
In the 3 minute presentation, Saylor reportedly showed 44 slides on how Microsoft could get to unprecedented financial growth through Bitcoin investment . He said that by redirecting its cash flows, dividends, stock buybacks and debt into Bitcoin, Microsoft could be the leader in the next big tech wave.
“Microsoft can’t afford to miss the next tech wave and Bitcoin is that wave,” Saylor said in a video posted on Dec 1. He said this would add hundreds to the stock price and eliminate shareholder risk and create trillions of enterprise value.
Saylor projected that Bitcoin could add $584 to the stock price over the next 10 years if Bitcoin gets to $1.7 million by 2034. This strategy, according to him, would take Microsoft’s market cap from $3.18 trillion to $8.1 trillion.
Microsoft and Bitcoin Investment: A $5 Trillion Opportunity?
Bitcoin Investment in Microsoft’s Growth
Saylor’s idea isn’t new. MicroStrategy under his leadership has already leveraged Bitcoin to get significant financial growth. The company holds 386,700 BTC bought for $21.9 billion which is now worth $37.6 billion. This has not only increased the company’s valuation but also the stock price to 465.5% in 2024 alone.
Similarly, Saylor said Microsoft, with its deep pockets and innovative culture, could set the bar by adopting Bitcoin. His proposal was that Bitcoin, as a rapidly appreciating asset, is a better alternative to bonds or stock buybacks.
“What if you could buy a $100 billion company growing faster than Microsoft for 1x revenue? What if you could do it every year?” Saylor asked. Bitcoin investment is scalable and profitable, he stressed.
Bitcoin Landscape is Changing
Saylor is making the case at a time when Bitcoin is on a big rally. It’s up 120% this year and above $96,000. This is driven by growing public and political support and more institutional products tied to Bitcoin.
Microsoft and Bitcoin Investment: A $5 Trillion Opportunity?
Trump as the incoming US President and pro-crypto is adding to what Saylor calls a “crypto renaissance”. Wall Street firms are also launching Bitcoin based products which is further validation of Bitcoin’s mainstream appeal.
Saylor says this makes a strong case for corporations like Microsoft to consider Bitcoin as a strategic asset. He said “It makes a lot more sense to buy Bitcoin than to buy your own stock back or to hold bonds.”
Conclusion
Michael Saylor’s proposal to Microsoft is a big ask but he is all in on Bitcoin investment. The growing adoption and the price appreciation of Bitcoin makes his vision plausible.
As Microsoft decides what to do, Saylor is making the case for how cryptocurrencies can disrupt the old financial system. Whether they do or not, Saylor is banking on Bitcoin growing bigger.
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