Michael Saylor, founder and chairman of MicroStrategy, is a well-known Bitcoin bull. He recently suggested to the Microsoft board of directors and CEO Satya Nadella: 'Bitcoin is the asset that Microsoft should embrace the most.'
BlockBeats reported earlier that Michael Saylor has agreed to give a 3-minute briefing to the Microsoft board to promote investing in Bitcoin. He recently shared snippets of the briefing on social media, stating:
Microsoft must not miss the next wave of technological innovation, and this wave is Bitcoin.
Michael Saylor pointed out: 'Bitcoin is the most important digital transformation of the 21st century and the future of digital capital.'
According to Google Finance data, Microsoft's stock price closed up 0.11% last Friday, at $423.46, with a cumulative increase of 3.67% over the past month.
MicroStrategy's Bitcoin strategy
MicroStrategy began purchasing Bitcoin in large quantities since 2020 and has adopted Bitcoin as the company's strategic reserve asset.
As of now, the company holds a total of 386,700 Bitcoins, worth over $37 billion at the current market price, with the latest purchase being an additional 55,500 Bitcoins last month.
Thanks to the rise in Bitcoin prices and positive Bitcoin strategies, MicroStrategy's stock price has soared 465% this year. Although it closed down 0.35% to $387.47 last Friday, it rebounded 2.15% in after-hours trading.
Michael Saylor advises Microsoft: Stop stock buybacks and instead buy Bitcoin.
In the briefing, Michael Saylor further stated that Microsoft should re-examine the company's capital allocation strategy. He suggested that instead of continuously buying back stock or holding bonds, it would be better to directly purchase Bitcoin. He said:
In the past five years, you have given up hundreds of billions of dollars in capital, resulting only in increased risks faced by shareholders. To break this vicious cycle, it is necessary to possess an asset that completely avoids counterparty risk (which is Bitcoin).
He even predicts that if Microsoft can convert its cash flow, dividends, buyback plans, and debt into Bitcoin, by 2034, Microsoft's stock price could increase by $584 per share, and the corporate value could potentially surge by $4.9 trillion.
Michael Saylor's advice not only highlights his strong belief in Bitcoin but also raises curiosity in the market about whether tech giants like Microsoft will seriously consider incorporating Bitcoin into their asset allocation to pave the way for future digital transformation.
