Article reposted from: Felix
Author: Michael Saylor
Compiled by: Felix, PANews
Microsoft plans to vote on the proposal to 'evaluate investing in Bitcoin' at its annual meeting on December 10. If the proposal passes, Microsoft will become the largest publicly traded crypto investment company, surpassing MicroStrategy and Tesla. At the start of the vote, Michael Saylor gave a 3-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, suggesting that Microsoft adopt Bitcoin as a core corporate strategy. Below are some highlights from the PPT used in the speech:
There are seven technology 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, and it is the fastest-growing, most popular, most interesting, most digital, most useful, and most globalized. Additionally, Microsoft's current ARR (Annual Recurring Revenue) is 18%, while Bitcoin's ARR is 62%.
Currently, global wealth is distributed across various assets. In the current global asset market of approximately $90 trillion, Bitcoin's market capitalization is about $2 trillion.
Global wealth is distributed between utility-providing assets and other capital-preserving assets. Among them, $45 trillion belongs to long-term capital (store of value). However, due to risks such as regulation, taxation, competition, obsolescence, economic and political turmoil, and crime, over $100 trillion in assets are lost annually.
Digital capital is superior to physical capital both economically and technologically; long-term capital is transitioning to digital capital (Bitcoin). Bitcoin provides advantages similar to owning buildings, but without obvious, fixed asset liabilities. For example: no taxes, no concerns about traffic, tenants, torts, weather factors, building corrosion, and regulatory agencies. In contrast, Bitcoin has characteristics such as intangible, indestructible, permanent existence, remote transmissibility, programmability, divisibility, convertibility, and configurability.
It can be said that Bitcoin is a revolutionary advancement in capital preservation.
Additionally, Bitcoin's market capitalization 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. The current Bitcoin network hash rate exceeds 750 Exahash, with 622 million crypto users and 400 million Bitcoin holders.
Based on four years of annual asset performance charts, Bitcoin is the best-performing uncorrelated asset on corporate balance sheets.
Performance since MicroStrategy adopted the 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 the Bitcoin strategy on August 10, 2020
The outstanding performance of corporate stocks is inseparable from Bitcoin (digital capital). Since MicroStrategy adopted the 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 the Bitcoin strategy on August 10, 2020
In addition, MSFT (Microsoft) stocks and options are weak and continuously deteriorating (Microsoft is reducing the options market and stocks as a means of value storage through its financial strategy).
Today, Bitcoin has become an institutional asset and is now a viable alternative to corporate bonds. The number of publicly traded 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 the White House, Senate, House of Representatives, and Wall Street, with notable figures such as 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.'
2025 will be the first year of a full resurgence of cryptocurrencies. 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 litigation war against cryptocurrencies
Digital Asset Framework
In this situation, Microsoft must make a choice:
Sticking to the past: traditional financial strategies based on government bonds, buybacks, and dividends
Embracing the future: innovative financial strategies based on Bitcoin as a digital capital asset
Setback: repurchasing $100 billion annually increases investor risk and slows growth
Progress: investing $100 billion annually reduces investor risk and accelerates growth
Meanwhile, Microsoft has repurchased $200 billion in capital over the past 5 years.
Share buybacks and dividends amplify Microsoft's risk factors, and Bitcoin is the best way to break 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 opportunity and take a leading position in global digital financial innovation.
Related reading: MicroStrategy's stock price faces shorting, with Bitcoin holdings exceeding $32.6 billion; can the leveraged game continue?
