Michael Saylor, CEO of MicroStrategy, stated that he is prepared to persuade investment guru Warren Buffett to use Berkshire Hathaway's $325 billion cash reserve to buy Bitcoin.

During a podcast interview on November 18, Saylor criticized Berkshire Hathaway, led by Buffett, for what he sees as problematic cash management strategies. He highlighted the inefficiency of Berkshire's $325 billion cash reserves, which he believes can generate at most 3% after-tax returns while facing a 15% cost of capital.

He further stated that the resulting 12% negative real return equates to an annual loss of $32 billion in shareholder value. When discussing Berkshire's $325 billion cash holdings, he emphasized, 'That $325 billion will destroy $32 billion every year, they are destroying $3 billion in capital every month.'

Under Saylor's leadership, MicroStrategy strongly advocates for the adoption of Bitcoin as a financial asset. He believes Bitcoin has unique advantages, such as preventing inflation and currency devaluation, and encourages companies with excess cash reserves to view it as part of their financial strategy. However, he acknowledges that each company has unique financial goals, risk tolerances, and regulatory considerations, making universal advice impractical.

In contrast, MicroStrategy's approach serves as a case study on how Bitcoin integrates into forward-looking, tech-savvy corporate strategies, allowing each company to assess whether this approach fits their specific circumstances. According to the company's latest disclosures, it has been actively accumulating Bitcoin, with holdings reaching 386,700 coins.

Saylor speculated that even traditionalists like Buffett might be persuaded to adopt Bitcoin. He quoted Buffett's late business partner Charlie Munger on a podcast: 'I would bet that if I could be alone with Buffett for an hour in a quiet environment, when I left he would say Bitcoin is a good idea. Munger would love it. We should buy some.'

Decrypt reports that at Microsoft's shareholder meeting in December 2024, Saylor's speech outlined how Microsoft plans to convert its current $200 billion capital allocation into Bitcoin holdings, showing the potential to reduce enterprise value risk from 95% to 59%, while increasing the annual return from 10.4% to 15.8%.

Saylor told the board, 'Bitcoin is a universal, permanent, and profitable merger partner.'

He likened this strategy to acquiring a company worth $100 billion, with a 60% annual growth rate and a revenue multiple of 1.

Saylor views Bitcoin as a unique corporate acquisition target for Microsoft, providing data that shows Bitcoin's annual return rate (ARR) is 62%, while Microsoft's ARR is 18%, and Bitcoin does not carry the typical complexities and risks associated with traditional mergers and acquisitions (M&A).

Saylor stated that Bitcoin is an acquisition target available at any time, and compared to Microsoft's current dividend and buyback strategy, it can absorb capital while delivering higher returns. This analogy seems primarily aimed at Microsoft's board and executive leadership, who are familiar with traditional M&A dynamics but may be seeking new ways to deploy capital at their existing scale.

Using the Bitcoin24 model, an open-source simulation model for Bitcoin adoption, Saylor demonstrated how Microsoft can transform its current position (market cap of about $3 trillion, net cash of $27 billion, cash flow of $70 billion, and an annual growth rate of 10%) into a larger and stronger financial foundation.

In October, Microsoft asked shareholders to vote on whether it should invest in Bitcoin.

'Do the right thing for your customers, employees, shareholders, country, world, and your legacy,' Saylor concluded, making his final push for one of the most significant corporate adoptions of Bitcoin to date.

He ultimately urged Microsoft shareholders to 'adopt Bitcoin'.#微策略持续增持BTC