Author: Michael Saylor
Compiled by: Felix, PANews
Microsoft plans to vote on a proposal to 'evaluate investing in Bitcoin' at its annual meeting on December 10. If the proposal passes, Microsoft will become the largest publicly listed crypto investment company, surpassing MicroStrategy and Tesla. At the start of the voting, Michael Saylor gave a three-minute speech to the Microsoft board, explaining why Bitcoin should be adopted. In his speech, Michael Saylor stated that Bitcoin represents 'digital capital', is the core opportunity of the next wave of technological innovation, and represents the greatest digital transformation of the 21st century, recommending that Microsoft adopt Bitcoin as a core corporate strategy. Below are some highlights from the PPT used in the speech:
There are seven technological waves that Microsoft cannot afford to miss:
Personal Computer
Graphical User Interface
Internet
Mobile Computing
Cloud Computing
Artificial Intelligence
Digital Capital
The greatest digital transformation of the 21st century is the transformation of capital, and Bitcoin is digital capital. Bitcoin is currently the seventh largest asset globally, its growth is the fastest, most popular, most interesting, most digital, most useful, and most global. Additionally, Microsoft's current ARR (Annual Recurring Revenue) is 18%, while Bitcoin's ARR is 62%.
Currently, global wealth is distributed among various assets. In the current global asset market of about $90 trillion, Bitcoin's market value is about $2 trillion.
Global wealth is distributed between utility-providing assets and other capital-preserving assets. Of this, $45 trillion belongs to long-term capital (value storage). However, due to risks such as regulation, taxation, competition, obsolescence, economic and political chaos, and crime, assets worth over $10 trillion are lost each year.
Digital capital is superior to physical capital both economically and technologically, and long-term capital is transforming into digital capital (Bitcoin). Bitcoin provides similar advantages to owning buildings, but without significant, fixed asset liabilities. For example: no taxes, no concerns about traffic, tenants, torts, weather factors, building deterioration, and regulatory bodies, etc. In contrast, Bitcoin has characteristics such as being intangible, indestructible, permanently existing, remotely transferable, programmable, divisible, exchangeable, and configurable.
It can be said that Bitcoin is a revolutionary advancement in capital preservation.
Furthermore, Bitcoin's market value is expected to grow from the current $2 trillion to $280 trillion by 2045, surpassing traditional assets such as bonds and gold.
At the same time, Bitcoin is backed by digital, political, and economic forces. Currently, the Bitcoin network's computing power exceeds 750 Exahash, with 622 million crypto users and 400 million Bitcoin holders.
According to the four-year annual asset performance chart, Bitcoin is the best-performing non-correlated asset on corporate balance sheets.
Performance since MicroStrategy adopted its Bitcoin strategy on August 10, 2020
Bitcoin's annual performance is ten times higher than that of Microsoft, while bonds perform even worse.
Performance since MicroStrategy adopted its Bitcoin strategy on August 10, 2020
The outstanding performance of corporate stocks cannot be separated from Bitcoin (digital capital). Since MicroStrategy adopted its Bitcoin strategy on August 10, 2020, MicroStrategy's stock price has increased by 3045%, while Microsoft's (MSFT) stock price has only increased by 103%.
Performance since MicroStrategy adopted its Bitcoin strategy on August 10, 2020
Furthermore, MSFT (Microsoft) stocks and options are weak and continuously deteriorating (Microsoft is cutting the options market and stocks as a means of value storage through its financial strategy).
Today, Bitcoin has become an institutional asset and a viable alternative to corporate bonds. The number of public entities holding Bitcoin has surged:
Moreover, a wave of political support for Bitcoin is surging, with endorsements from governments, Wall Street, and several well-known political figures. This includes endorsements from the White House, Senate, House of Representatives, and Wall Street, with notable figures like Donald Trump, JD Vance, Robert Kennedy, Howard Lutnick, and Elon Musk. At the same time, support for the U.S. strategic Bitcoin reserve is also surging, with Trump stating, 'Never sell your Bitcoin.'
The year 2025 will mark the first year of a full revival of cryptocurrency. It is expected that:
Wall Street adopts ETFs
FASB Fair Value Accounting
There are over 250 supporters of cryptocurrency in Congress
Bitcoin Strategic Reserve Act
Abolish SAB 121
End the legal war against cryptocurrency
Digital Asset Framework
In this situation, Microsoft must make a choice:
Stick to the Past: Traditional financial strategies based on government bonds, buybacks, and dividends
Embrace the Future: Innovative financial strategies based on Bitcoin as a digital capital asset
Regress: Buy back $100 billion annually, increase investor risk, and slow growth
Progress: Invest $100 billion annually, reduce investor risk, and accelerate growth
Meanwhile, Microsoft has repurchased $200 billion of capital in five years.
Buybacks and dividends amplify Microsoft's risk factors, and Bitcoin is the best way to escape this vicious cycle. As an asset, Bitcoin has no counterparty risk from competitors, nations, companies, creditors, cultures, or currencies. It is recommended that Microsoft seize this era opportunity to take a leading position in global digital financial innovation.
Related reading: MicroStrategy's stock price faces short selling, Bitcoin holdings exceed $32.6 billion, can the leverage game continue?
