Michael Saylor, the chairman of MicroStrategy and a Bitcoin maximalist, has done it again. In a bold presentation before the Microsoft board, he stated that Microsoft could add $5 trillion to its market capitalization if it fully embraced Bitcoin investment as part of its strategy. "If you do this, you will add hundreds of dollars to the stock price. You can create trillions of dollars in business value. You can eliminate risk for your shareholders."
Saylor's vision for Microsoft
In a 3-minute presentation, Saylor reportedly showcased 44 slides on how Microsoft could achieve unprecedented financial growth through investment in Bitcoin. He stated that by redirecting cash flow, dividends, stock buybacks, and debt into Bitcoin, Microsoft could become a leader in the next major wave of technology.
"Microsoft cannot afford to miss the next wave of technology, and Bitcoin is that wave," Saylor said in a video posted on December 1. He stated that this would help add hundreds of dollars to the stock price, eliminate risk for shareholders, and create trillions in business value.
Saylor predicts that Bitcoin could add $584 to the stock price over the next 10 years if Bitcoin reaches $1.7 million by 2034. According to him, this strategy would increase Microsoft's market capitalization from $3.18 trillion to $8.1 trillion.
Investing in Bitcoin for Microsoft's growth
Saylor's idea is not new. MicroStrategy under his leadership has leveraged Bitcoin to achieve significant financial growth. The company holds 386,700 BTC purchased for $21.9 billion, which is now worth $37.6 billion. This not only increased the company's valuation but also boosted the stock price by 465.5% in 2024 alone.
Similarly, Saylor stated that Microsoft, with its abundant resources and culture of innovation, could set the standard by adopting Bitcoin. His proposal is 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 that grows faster than Microsoft with 1x revenue? What if you could do that every year?" Saylor asked. He emphasized that Bitcoin investment can scale and be profitable.
The Bitcoin landscape is changing
Saylor made this argument at a time when Bitcoin is experiencing a strong price surge. The price has risen 120% this year and surpassed $96,000. This is driven by increasing public and political support as well as more institutional products related to Bitcoin.
Trump as the new President of the United States and a supporter of cryptocurrency is contributing to what Saylor calls the "cryptocurrency renaissance." Wall Street firms are also launching Bitcoin-based products, further affirming Bitcoin's mainstream appeal.
Saylor said this creates a compelling argument for corporations like Microsoft to consider Bitcoin as a strategic asset. He stated, "Buying Bitcoin makes much more sense than buying back your own stock or holding bonds."
Conclusion
Michael Saylor's proposal to Microsoft is a tall order, but he is fully supportive of investing in Bitcoin. The increasing adoption and rising Bitcoin prices make his vision feasible.
As Microsoft decides what to do, Saylor is making the case for how cryptocurrency can disrupt the old financial system. Whether or not it happens, Saylor is looking forward to the robust growth of Bitcoin.