With Microsoft stockholders poised to vote on whether the software giant should consider buying Bitcoin, Michael Saylor made his pitch to its board of directors in a three-minute presentation.
His main message — Do not miss this opportunity.
On December 1, MicroStrategy Chair Michael Saylor told Microsoft’s board of directors that Bitcoin could be a force multiplier for the company’s balance sheet, and its valuation.
Case in point: Shares of MicroStrategy, which has added $37 billion worth of the cryptocurrency to its balance sheet over the years, have soared more than 460% this year.
On December 10, Microsoft shareholders will get to vote on whether the company should take a step in that direction.
BTC pioneer
Saylor, who has fashioned MicroStrategy into a “Bitcoin bank,” said the Windows operating system maker could use the cryptocurrency to hedge inflation and economic uncertainty.
Saylor contended that global corporations such as Microsoft could preserve trillions in value if they parked their cash in Bitcoin.
“Microsoft has a choice to make: Cling to the past or embrace the future,” Saylor said.
All-time high
As Bitcoin has soared to an all-time high topping $98,000 in November. MicroStrategy’s market cap has swelled to $89 billion and made it a candidate for inclusion in the prestigious Nasdaq-100 index.
At the same time, MicroStrategy’s aggressive crypto investments have put it in the crosshairs of short-sellers who say the stock is “overheated” and due for a correction.
Saylor criticised Microsoft for spending $200 billion in dividends and stock buybacks over the past five years. If it had bought Bitcoin instead, he argued, the company could have done a better job preserving value.
He suggested that buying Bitcoin could boost Microsoft’s current $3.2 trillion market cap to over $8 trillion.
Tangible assets
During a Twitter Spaces session hosted by VanEck on November 20, Saylor said that Microsoft’s stock would be more stable and less risky if it was “based upon tangible assets or property like Bitcoin.”
In his presentation to Microsoft, Saylor also touted the support of President-elect Donald Trump and growing institutional adoption from the likes of BlackRock as signs of a “Bitcoin renaissance.”
In October, National Center for Public Policy Research, a conservative think tank, urged Microsoft investors to vote for a shareholder resolution directing the board to study whether to use Bitcoin to diversify its balance sheet.
The organisation has filed similar proposals with more than 60 companies this year.
Hordes of cash
Saylor clearly agrees and added his voice to the chorus of Bitcoin booster ahead of Microsoft’s annual meeting on December 10. But he said more global corporations with huge cash reserves should also consider Bitcoin.
“It ought to be put on the agenda of Berkshire Hathaway and Apple and Google and Meta because they all have huge hordes of cash, and they’re all burning shareholder value,” Saylor said during the Twitter Spaces session.
Microsoft’s board has recommended shareholders vote against the proposal, stating the company already evaluates a “wide range of investable assets.”
Crypto market movers
Bitcoin is down 2% over the past 24 hours to trade at $95,020.
Ethereum is down 2.4% to $3,596.
What we’re reading
How MicroStrategy’s Bitcoin gamble will ‘make it challenging’ to enter the Nasdaq-100 — DL News
Did Base Season just begin? — Milk Road
Ether Gains 19% Against Bitcoin in a Week After Months of Underperformance — Unchained
XRP becomes world’s third-largest crypto, overtakes Tether’s USDT in market cap — The Block
Jailed dev Alexey Pertsev gets a boost from ‘relevant’ Tornado Cash ruling — DL News
Kyle Baird is DL News’ Weekend Editor. Got a tip? Email at kbaird@dlnews.com.
