Original author: Michael Saylor, Founder of MicroStrategy
Original text translated by: Felix, PANews
Microsoft plans to vote on the proposal to 'evaluate investment in Bitcoin' at the annual meeting on December 10. If the proposal passes, Microsoft will become the largest publicly listed cryptocurrency investment company, surpassing MicroStrategy and Tesla. As the vote opens, Michael Saylor made 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', is a core opportunity for the next wave of technological innovation, represents the greatest digital transformation of the 21st century, and suggested that Microsoft adopt Bitcoin as a core corporate strategy. Below are some highlights from the PPT used in the speech:
There are seven waves of technology that Microsoft cannot miss:
· Personal Computers
· Graphical User Interface
· Internet
· Mobile Computing
· Cloud Computing
· Artificial Intelligence
· Digital Capital
The largest 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, most interesting, most digitalized, most useful, and most 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 $90 trillion, Bitcoin's market value is about $2 trillion.
Global wealth distribution exists between assets that provide utility and other capital-preserving assets. Among these, $45 trillion belongs to long-term capital (value storage). However, due to risks such as regulation, taxation, competition, obsolescence, economic and political chaos, and crime, over $100 trillion in assets are lost annually.
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 the obvious liabilities of fixed assets. For example: no taxes, no considerations for transportation, tenants, torts, weather factors, building decay, and regulatory bodies, etc. In contrast, Bitcoin possesses characteristics such as being intangible, indestructible, permanently existing, remotely transferable, programmable, divisible, exchangeable, 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 such as 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 a four-year annual asset performance chart, Bitcoin is the best-performing non-correlated asset on corporate balance sheets.
Performance since MicroStrategy adopted a Bitcoin strategy on August 10, 2020
Bitcoin's annual performance is 10 times higher than Microsoft's, while bonds perform even worse.
Performance since MicroStrategy adopted a Bitcoin strategy on August 10, 2020
The excellent performance of corporate stocks is inseparable from Bitcoin (digital capital). Since MicroStrategy adopted a 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 a Bitcoin strategy on August 10, 2020
Moreover, MSFT (Microsoft) stocks and options are weak and constantly 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 a viable alternative to corporate bonds. The number of public 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 politicians. 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 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 revival of cryptocurrency. Expected:
· Wall Street adopts ETF
· FASB Fair Value Accounting
· There are over 250 supporters of cryptocurrency in Congress
· Bitcoin Strategic Reserve Act
· Repeal SAB 121
· End the legal warfare against cryptocurrencies
· Digital Asset Framework
In this case, Microsoft must make a choice:
· Adhere to the past: traditional financial strategies based on government bonds, buybacks, and dividends
· Embrace the future: innovative financial strategies based on Bitcoin as a digital capital asset
· Regression: Buy back $100 billion annually, increasing investor risk and slowing growth
· Progress: Invest $100 billion annually, reducing investor risk and accelerating growth
Moreover, Microsoft has repurchased $200 billion of capital in the past five years.
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 competitors, state, company, creditor, cultural, or currency counterparty risks. It is suggested that Microsoft seize this era opportunity and take a leading position in global digital financial innovation.
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