Michael Saylor, co-founder of #microstrategy , has proposed a bold strategy to the Microsoft board: adopt Bitcoin as part of financial management. According to him, this could increase Microsoft's stock value to $584 and create nearly $5 trillion in shareholder value by 2034.
Saylor's Bitcoin Strategy:
1. Transforming capital distribution:
• #Microsoft currently has $200 billion in capital distributions (including dividends and stock buybacks).
• Saylor proposes converting this capital into Bitcoin, reducing the risk of business value from 95% to 59% and improving annual yield from 10.4% to 15.8%.
2. Bitcoin as the “perfect merger partner”:
• Saylor describes Bitcoin as a “perpetual merger partner” with a growth rate of 62% per year, far exceeding Microsoft's 18% rate.
• He emphasizes that Bitcoin carries no counterparty risk, helping reduce reliance on intermediary entities.
3. Applying the Bitcoin24 model:
• Saylor uses the Bitcoin24 model to simulate how Microsoft could expand its current market capitalization from $3 trillion to a stronger financial platform.
Why should Microsoft invest in Bitcoin?
• Reducing financial risk: Bitcoin acts as an uncorrelated asset, reducing dependence on traditional market risks and geopolitical volatility.
• Long-term growth: If adopted, Microsoft could leverage Bitcoin's rapid growth to increase shareholder value and expand market capitalization.
Conclusion
Michael Saylor has urged Microsoft to take this bold step at the December 2024 shareholder meeting. If approved, this would be one of the largest Bitcoin adoption moves ever, helping Microsoft not only enhance value but also assert its leadership position in adopting new financial technology.
“Do the right thing for your customers, shareholders, and your legacy,” Saylor concluded. “Adopt Bitcoin.”