Author: Jesse Coghlan, CoinTelegraph; Translated by: Tao Zhu, Jinse Finance
MicroStrategy Chairman and Bitcoin bull Saylor told Microsoft's board that if Microsoft fully committed to Bitcoin, the company's market value could increase by nearly $5 trillion.
Saylor presented his case to Microsoft's board on why the tech giant should buy Bitcoin, elaborating on this point with 44 slides in just over three minutes.
Saylor stated in a video shared on December 1: “Microsoft cannot miss the next wave of technological innovation, and Bitcoin is that wave.” He urged Microsoft to convert cash flow, dividends, stock buybacks, and debt into cryptocurrency, adding:
“If you do this, your stock price will increase by hundreds of dollars. You can create trillions of dollars in enterprise value. You can eliminate shareholder risk.”
Saylor claims in his pitch that if Microsoft used all its finances and debt, along with all cash flow, dividend payments, and stock buyback funds to purchase Bitcoin, it could potentially increase Microsoft's stock price by $584 over the next 10 years—assuming that by the end of 2034, 1 BTC will be worth $1.7 million.
Saylor's slides claim that if Microsoft fully invests in Bitcoin, this strategy could increase Microsoft's value by $4.9 trillion. The company currently has a market capitalization of $3.18 trillion, ranking third in the world, behind leading Apple and Nvidia.
Year-to-date, BTC has surged 120% (up about 40% in just the past month), reaching nearly $100,000. Since 2020, Saylor's MicroStrategy has purchased 386,700 BTC for a total price of $21.9 billion, worth nearly $37.6 billion, with Bitcoin priced at $97,200.
So far in 2024, MicroStrategy (MSTR) stock has surged 465.5% along with the value of its Bitcoin holdings. Its stock peaked at $421.88 in November. According to Google Finance, the index broke through the historical high that had long been maintained before the burst of the internet bubble in early 2000 on the 22nd.
Saylor claims that public and political support for Bitcoin is “surging,” and that a “cryptocurrency revival” is occurring, pointing to statements supporting cryptocurrency made by incoming President Donald Trump and Bitcoin investment products launched by prominent Wall Street companies.
Saylor believes Microsoft should invest $100 billion in Bitcoin each year and claims that “buying Bitcoin makes more sense than buying back its own stock or holding Bitcoin instead of holding bonds.”
“What if you could acquire a $100 billion company growing faster than Microsoft at 1x revenue? What if you could do that every year?”
“Now is the time for Microsoft to evaluate its Bitcoin strategic options,” Saylor said. “Therefore, do the right thing for the world and adopt Bitcoin.”
