By Key Points
- Michael Saylor pitches Bitcoin to Microsoft’s board.
- Proposes Bitcoin to make Microsoft stock more stable.
- MicroStrategy’s Bitcoin strategy outperformed Microsoft stock.
- Microsoft’s board opposes the proposal ahead of the Dec. 10 vote.
The Michael Saylor Bitcoin Strategy is back in the spotlight, with Saylor aiming to convince Microsoft’s board of directors to embrace Bitcoin.
Known for his staunch Bitcoin advocacy, Saylor, the Chairman of MicroStrategy, is set to present a three-minute pitch to Microsoft, urging the tech giant to consider Bitcoin as part of its investment strategy.
Saylor’s proposal stems from a shareholder initiative led by the National Center for Public Policy Research (NCPPR), which has pushed for a vote on the topic scheduled for Dec. 10. The aim? To assess how Bitcoin could enhance Microsoft’s financial stability and shareholder returns.
Set a reminder for this post-US election bombshell discussion with @SenLummis, @saylor, @matthew_sigel @JanvanEck3 as they dive into lessons from El Salvador’s Bitcoin experiment for the US, next steps for Senator Cynthia Lummis’ BITCOIN Act (the strategic BTC reserve) and…
— VanEck (@vaneck_us) November 8, 2024
Why Bitcoin Could Reshape Microsoft
Michael Saylor’s Bitcoin strategy is rooted in transforming how large corporations like Microsoft manage their cash reserves and shareholder value. According to him, Bitcoin offers tangible asset backing that can stabilize stock value and reduce overall risk.
Currently, Microsoft’s value overwhelmingly depends on quarterly earnings. Saylor estimates that 98.5% of the tech giant’s enterprise value comes from its intangible results, leaving only 1.5% linked to tangible assets. He argues that incorporating Bitcoin into Microsoft’s investment strategy could create a more balanced and resilient stock.
“This isn’t just about cryptocurrencies; it’s about building a stronger Microsoft,” Saylor stated. “The Michael Saylor Bitcoin Strategy can protect shareholder value and stabilize the company for the long term.”
He also pointed to the success of MicroStrategy’s Bitcoin investment. The company’s stock has outperformed Microsoft by over 300% in 2023, even with a fraction of Microsoft’s operational scale. For Saylor, this proves that Bitcoin isn’t just a theoretical hedge but a proven strategy for creating shareholder value.
Microsoft’s Bitcoin Investment Debate
The Michael Saylor Bitcoin Strategy faces resistance from Microsoft’s board. In October, Microsoft disclosed a shareholder proposal for a Dec. 10 vote, requesting an assessment of Bitcoin as an investable asset.
However, the board has already recommended voting against it, citing that it evaluates a diverse range of asset classes, including cryptocurrencies, and doesn’t see the need for a specific Bitcoin-focused analysis.
Ethan Peck, deputy director of the NCPPR’s Free Enterprise Project, said the proposal puts Microsoft in a challenging position. If the company rejects the Bitcoin investment assessment, it risks appearing closed to innovative asset strategies.
The NCPPR has been vocal in its support, highlighting MicroStrategy’s success as a model for Microsoft to follow. They argue that neglecting Bitcoin could result in missed opportunities to maximize shareholder value.
Could the Michael Saylor Bitcoin Strategy Set a New Trend?
Saylor believes that Microsoft isn’t alone in needing Bitcoin. He argues that all major corporations with large cash reserves—like Apple, Meta, and Google—should adopt similar strategies. According to Saylor, these companies risk losing shareholder value by not diversifying into Bitcoin, a tangible asset with global relevance and a track record of long-term appreciation.
Adopting Bitcoin would not only stabilize stock performance but also hedge against inflation and currency fluctuations, he says. “Microsoft could lead the way in corporate innovation by embracing Bitcoin,” Saylor added.
The Dec. 10 vote will determine whether the Microsoft Bitcoin Investment proposal gains traction. While the board remains opposed, growing shareholder interest in alternative investments could force a reevaluation of Microsoft’s current stance.
The Bigger Picture
The Michael Saylor Bitcoin Strategy represents a broader push to integrate Bitcoin into mainstream corporate investing.
If Microsoft adopts this strategy, it could set a precedent for other tech giants and reshape the financial strategies of major corporations globally.
As the crypto industry evolves, companies like Microsoft are increasingly pressured to adapt or risk falling behind. Whether the proposal succeeds or not, Saylor’s efforts underscore Bitcoin’s growing importance in discussions about the future of finance.
