Original title: (Microsoft Bitcoin Strategy)
Author: Michael Saylor
Translated by: Felix, PANews
Microsoft plans to vote on the proposal to 'evaluate investing in Bitcoin' at the annual meeting on December 10. If approved, Microsoft will become the largest publicly listed crypto investment company, surpassing MicroStrategy and Tesla. As the vote begins, 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 technological waves that Microsoft cannot miss:
Personal Computers
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, growing the fastest, being the most popular, interesting, digitalized, useful, and globalized. Furthermore, 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 $900 trillion, Bitcoin's market capitalization is about $2 trillion.
Global wealth is distributed between assets that provide utility and other assets that preserve capital. Among them, $45 trillion belongs to long-term capital (value storage). However, due to risks such as regulation, taxation, competition, obsolescence, economic and political turmoil, and crime, over $100 trillion in assets is lost each year.
Digital capital outperforms physical capital both economically and technologically, with long-term capital transitioning into digital capital (Bitcoin). Bitcoin offers advantages similar to owning real estate but without the obvious, fixed asset liabilities. For example: no taxes, no concerns about transportation, tenants, torts, weather factors, building decay, and regulatory bodies, etc. In contrast, Bitcoin has characteristics such as being intangible, indestructible, permanently existing, remotely transferable, programmable, divisible, convertible, and configurable.
It can be said that Bitcoin is a revolutionary advancement in capital preservation.
Moreover, Bitcoin's market capitalization 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 hash rate 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 non-correlated asset on corporate balance sheets.
Performance since MicroStrategy adopted its Bitcoin strategy on August 10, 2020
Bitcoin's annual performance is 10 times that of Microsoft, while bonds perform even worse.
Performance since MicroStrategy adopted its Bitcoin strategy on August 10, 2020
The exceptional performance of corporate stocks is inseparable from Bitcoin (digital capital). Since MicroStrategy adopted its Bitcoin strategy on August 10, 2020, its stock price has increased by 3045%, while Microsoft's (MSFT) stock price has only increased by 103%.
Performance since MicroStrategy adopted its Bitcoin strategy on August 10, 2020
Additionally, MSFT (Microsoft) stock and options are weak and continuously deteriorating (Microsoft is cutting 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 public entities holding Bitcoin has surged:
Additionally, a political wave of support for Bitcoin is emerging, with endorsements from governments, Wall Street, and several prominent political figures. Notable endorsements include the White House, Senate, House of Representatives, and Wall Street, with notable figures like Donald Trump, JD Vance, Robert Kennedy, Howard Lutnick, and Elon Musk. Meanwhile, 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 revival for 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 Bill
Abolish SAB 121
End the legal warfare against 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
Regression: Repurchasing $100 billion annually increases investor risk and slows growth
Progress: Investing $100 billion annually reduces investor risk and accelerates growth
Microsoft has repurchased $200 billion in capital over the past 5 years.
Buybacks and dividends amplify Microsoft's risk factors, and Bitcoin is the best way to escape this vicious cycle. As an asset, Bitcoin has no competitors, country, company, creditor, cultural, or currency counterparty risk. Microsoft is advised to seize this opportunity of the era and take a leading role in global digital financial innovation.
