Michael Saylor Urges Microsoft to Buy Bitcoin Instead of Its Own Stock

Michael Saylor, the Executive Chairman of MicroStrategy, has made a bold suggestion to Microsoft’s board of executives, urging them to adopt Bitcoin as a strategic reserve rather than repurchasing their own stock. On December 1, Saylor presented his case to Microsoft, claiming that Bitcoin is not only a transformational digital asset but also a more effective tool for growth and wealth preservation compared to Microsoft’s traditional investment strategies.

Bitcoin: A Better Investment Than Microsoft’s Stock

Saylor highlighted that Bitcoin is projected to become one of the largest assets in the world, potentially accounting for $280 trillion of global wealth in the next 20 years, surpassing the value of gold ($45 trillion) and art ($110 trillion). He emphasized that Bitcoin’s annual performance has far outpaced that of Microsoft’s stock, noting that Bitcoin’s price movement has outperformed Microsoft shares by 12 times annually.

In his presentation, Saylor also pointed out that MicroStrategy’s stock (MSTR) has surged 3,045% since the company began acquiring Bitcoin, compared to 103% growth for Microsoft (MSFT) over the same period. This stark difference, according to Saylor, demonstrates the superior value of Bitcoin as an investment.

Saylor argued, “Bitcoin is the best asset that you can own. The numbers speak for themselves. It makes a lot more sense to buy Bitcoin than buy your own stock back, or to hold Bitcoin rather than holding bonds. If you want to outperform, you gotta need Bitcoin.”

The Strategic Reserve Proposal

Saylor’s proposal essentially presents two choices for Microsoft’s board:

• Stick to traditional strategies, such as stock buybacks, which are slow to grow and could increase investor risk over time.
• Embrace Bitcoin as a strategic reserve, which he argues could lead to accelerated growth and a massive increase in Microsoft’s market cap and share price.

Saylor explained that if Microsoft were to adopt a Bitcoin reserve, its market capitalization could rise from the current levels to anywhere between $1 trillion and $4.9 trillion. Additionally, he predicted that the company’s share price could surge up to $584, marking a significant boost from its current valuation.

Saylor also highlighted Bitcoin24, a custom platform for corporations to manage Bitcoin assets, which he offered as a solution for Microsoft’s adoption of Bitcoin.

Potential Benefits and Risks

By holding Bitcoin, Saylor estimates that Microsoft’s annual recurring revenue could increase from 10.4% to 15.8%, and the risk to Microsoft shares could be reduced, with a decline in risk from 95% to 59%. He also pointed to the political support for Bitcoin, including Trump’s administration and the growing availability of Bitcoin ETFs, which will likely drive massive adoption in the coming years.

In Saylor’s view, Bitcoin’s potential for wealth accumulation and its increasing role in the global financial system make it an essential asset for any forward-thinking company. He believes that institutional adoption of Bitcoin is inevitable, and companies like Microsoft should act quickly to secure their place in the future economy.

Michael Saylor’s presentation to Microsoft offers a provocative vision for the future of corporate finance. Rather than sticking with conventional financial strategies, he encourages companies to adopt Bitcoin as part of their reserves, asserting that it will not only outperform traditional assets but also drive long-term growth. By doing so, companies like Microsoft can position themselves for future success in the rapidly evolving world of digital capital. Whether Microsoft will heed Saylor’s advice remains to be seen, but the conversation underscores the growing influence and potential of Bitcoin in shaping the financial landscape.