MicroStrategy co-founder Michael Saylor told Microsoft CEO Satya Nadella and the board that Bitcoin is the best asset the company can have. In a three-minute video recently shown to Microsoft, Saylor stated, “Microsoft cannot miss the next wave of technology, and Bitcoin is that wave; Bitcoin represents the greatest digital transformation of the 21st century, representing digital capital.” Saylor continued to say that it “makes sense” for Microsoft to buy and hold Bitcoin instead of repurchasing its own stock or holding bonds. He further stated, “Over the past five years, you have given up hundreds of billions of dollars in capital, and you have only amplified the risks faced by shareholders. If you want to escape this vicious cycle, you need an asset that has no counterparty risk.” He added that if Microsoft converted its cash flow, dividends, buybacks, and debt into Bitcoin, by 2034, Microsoft's stock price could increase by $584 per share, and the enterprise value could grow by $4.9 trillion. Microsoft’s stock closed up 0.11% on Friday at $423.46. According to Google Finance data, the stock has risen 3.67% over the past month. (The Block)
