According to Cointelegraph, MicroStrategy chairman Michael Saylor has presented a compelling case to Microsoft's board of directors, suggesting that the tech giant could significantly boost its market capitalization by investing heavily in Bitcoin. Saylor, a well-known advocate for Bitcoin, argued that Microsoft could potentially add nearly $5 trillion to its market cap by fully embracing the cryptocurrency.
In a brief yet impactful presentation, Saylor delivered his pitch to Microsoft's board, emphasizing the importance of not missing out on what he described as the next major technological wave. He proposed that Microsoft should convert its cash flows, dividend payouts, stock buybacks, and debt into Bitcoin. Saylor claimed that such a move could increase Microsoft's stock price by hundreds of dollars and create trillions of dollars in enterprise value, while also reducing risk for shareholders.
Saylor's presentation included projections that Bitcoin could add up to $584 to Microsoft's share price over the next decade if the company utilized all its treasury, debt, cash flows, dividend payouts, and share buyback funds to purchase Bitcoin. This assumption is based on a forecast that Bitcoin's value could reach $1.7 million per BTC by the end of 2034. Currently, Microsoft stands as the third most valuable company globally, with a market cap of $3.18 trillion, trailing only Apple Inc. and Nvidia Corp.
The cryptocurrency market has seen significant growth, with Bitcoin surging 120% this year, reaching nearly $100,000. MicroStrategy, under Saylor's leadership, has acquired 386,700 BTC since 2020, investing $21.9 billion, which is now valued at approximately $37.6 billion with Bitcoin priced at $97,200. This strategic investment has led to a 465.5% increase in MicroStrategy's share value in 2024, with shares peaking at $421.88 in November, surpassing its previous all-time high from the early 2000s.
Saylor also highlighted the growing public and political support for Bitcoin, citing pro-crypto statements from incoming President Donald Trump and the introduction of Bitcoin investment products by major Wall Street firms. He suggested that Microsoft should consider investing $100 billion annually in Bitcoin, arguing that it would be more beneficial than stock buybacks or holding bonds. Saylor concluded by urging Microsoft to explore its strategic options regarding Bitcoin, advocating for the company to adopt the cryptocurrency for the greater good.
