Author: Michael Saylor
Compiled by: Felix, PANews
Microsoft plans to vote on the proposal to 'evaluate investing in Bitcoin' at the annual meeting on December 10. If the proposal passes, Microsoft will become the largest publicly listed crypto investment company, surpassing MicroStrategy and Tesla. As the voting begins, Michael Saylor gave a 3-minute speech at the Microsoft board explaining why Bitcoin should be adopted. In the speech, Michael Saylor stated that Bitcoin represents 'digital capital' and is the core opportunity of the next wave of technological innovation, representing 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 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, with the fastest growth, most popularity, 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 among various assets. In the current global asset market of approximately $90 trillion, Bitcoin's market value is about $2 trillion.
Global wealth is distributed between assets that provide utility and other assets that preserve capital. Of which, $45 trillion belongs to long-term capital (store of value). However, due to regulatory, tax, competition, obsolescence, economic and political turmoil, and crime risk factors, more than $1 trillion in assets are lost each year.
Digital capital is superior to physical capital both economically and technologically, and long-term capital is transforming into digital capital (Bitcoin). Bitcoin offers advantages similar to owning buildings but without obvious, fixed asset liabilities. For example: no taxes, no need to consider traffic, tenants, torts, weather factors, building corrosion, and regulatory agencies. In contrast, Bitcoin has characteristics such as intangible, indestructible, permanent existence, remotely transferable, programmable, divisible, convertible, and configurable.
It can be said that Bitcoin is a revolutionary advancement in capital preservation.
Moreover, Bitcoin's market value is expected to grow from the current $2 trillion to $280 trillion by 2045, surpassing traditional assets like bonds and gold.
At the same time, Bitcoin is backed by digital, political, and economic forces. The current Bitcoin network has a computing power of over 750 Exahash, with 622 million crypto users and 400 million Bitcoin holders.
According to the four-year annual asset performance chart, Bitcoin is the best-performing uncorrelated asset on corporate balance sheets.
Performance since MicroStrategy adopted Bitcoin strategy on August 10, 2020
Bitcoin's annual performance exceeds Microsoft's by 10 times, while bonds perform even worse.
Performance since MicroStrategy adopted 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, its stock price has increased by 3045%, while Microsoft's (MSFT) stock price has only risen by 103%.
Performance since MicroStrategy adopted Bitcoin strategy on August 10, 2020
Moreover, MSFT (Microsoft) stocks and options are weak and deteriorating (Microsoft is cutting the options market and stocks as a store of value through its financial strategy).
Today, Bitcoin has become an institutional asset and is now a viable alternative to corporate bonds. The number of public entities holding Bitcoin has surged:
Moreover, a wave of political support for Bitcoin is rising, with endorsements from governments, Wall Street, and several prominent political figures. This includes the White House, the Senate, the 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 reserves is also surging, with Trump stating, 'Never sell your Bitcoin'.
2025 will be the first year of a full revival of cryptocurrency. Expected:
Wall Street adopts ETF
FASB Fair Value Accounting
There are more than 250 supporters of cryptocurrency in Congress
Bitcoin Strategic Reserve Act
Abolish SAB 121
End the legal litigation war on cryptocurrency
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: $100 billion buyback each year, increasing investor risk and slowing growth
Progress: Investing $100 billion each year, reducing investor risk and accelerating growth
And Microsoft has repurchased $200 billion of capital in the past five years.
Repurchases and dividends amplify Microsoft's risk factors, and Bitcoin is the best way to break this vicious cycle. As an asset, Bitcoin has no competitors, state, company, creditor, cultural, or currency counterparty risks. It is recommended that Microsoft seize this opportunity to lead in global digital financial innovation.
Related reading: MicroStrategy's stock price faces shorting, Bitcoin holdings exceed $32.6 billion, can the leveraged game continue?
