Michael Saylor stated in his speech 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. He suggested that Microsoft adopt Bitcoin as a core corporate strategy.
Microsoft plans to vote on a proposal to 'evaluate investing in Bitcoin' at its annual meeting on December 10. If approved, Microsoft will become the largest publicly traded crypto investment company. Saylor emphasized in his speech to the Microsoft board that Bitcoin is currently the seventh-largest asset globally, the fastest-growing, most popular, and most useful. Microsoft's ARR is 18%, while Bitcoin's ARR is 62%.
Global wealth is distributed between utility-providing assets and other capital-preserving assets, with $45 trillion belonging to long-term capital. Digital capital is economically and technologically superior to physical capital, and long-term capital is transitioning to digital capital (Bitcoin). Bitcoin offers advantages similar to owning buildings but without the liabilities of fixed assets.
Bitcoin's market capitalization is expected to grow from the current $2 trillion to $280 trillion by 2045. The Bitcoin network's hash rate exceeds 750 Exahash and has 622 million crypto users. Since MicroStrategy adopted a Bitcoin strategy on August 10, 2020, its stock price has increased by 3045%, while Microsoft's stock price has only increased by 103%.
Bitcoin has become an institutional asset, serving as a viable alternative to corporate bonds. A wave of political support for Bitcoin is emerging, with endorsements from governments, Wall Street, and several prominent political figures. The year 2025 will be the first year of a comprehensive revival of cryptocurrencies.
Microsoft must choose between adhering to traditional financial strategies and embracing an innovative financial strategy based on Bitcoin. As an asset, Bitcoin has no competitors, and there are no counterparty risks from nations, companies, creditors, cultures, or currencies.