Michael Saylor Urges Microsoft to Embrace Bitcoin Over Its Own Stock
In an audacious move, Michael Saylor, the Executive Chairman of MicroStrategy, recently took the stage to address Microsoft's board of directors. His mission was clear: to convince the tech giant to shift its financial strategy towards Bitcoin. On December 1st, Saylor delivered a succinct pitch, promising to outline Bitcoin's advantages in just three minutes, and he stayed true to his word.
Saylor painted Bitcoin not just as another digital asset but as the future of digital capital. He emphasized that Bitcoin's potential to grow is unparalleled, predicting it would eventually amass a portion of global wealth that could eclipse even traditional giants like gold and art. According to Saylor's projections, Bitcoin could represent up to $280 trillion of the world's wealth in the next two decades, far surpassing gold's $45 trillion and art's $110 trillion.
His argument was bolstered by comparing Bitcoin's performance against Microsoft's stock. He pointed out that Bitcoin's price movement has outpaced Microsoft's shares by a staggering factor of twelve annually. MicroStrategy itself, after diving deep into Bitcoin, saw its stock surge by 3,045%, while Microsoft's stock growth was a modest 103% over the same period. "Bitcoin is the best asset that you can own," Saylor declared during his presentation, which is now available on YouTube. He argued that investing in Bitcoin would make more sense than buying back Microsoft's own stock or holding bonds, especially for those aiming to outperform traditional investments.
The Strategic Shift
Saylor's presentation wasn't just about numbers; it was a call to action. He challenged Microsoft's board to choose between sticking with a conventional financial strategy, which he described as slow-growing and fraught with investor risk, or to pivot towards a future where Bitcoin plays a central role. This shift, according to Saylor, would not only accelerate growth but also align Microsoft with the burgeoning support for Bitcoin, highlighted by political endorsements and the advent of Bitcoin ETFs in the market.
In his vision, adopting Bitcoin could catapult Microsoft's total market value from its current stature to somewhere between $1 trillion and $4.9 trillion per share. Moreover, this strategic move would potentially slash the risk associated with Microsoft's shares from 95% down to 59%, with a corresponding increase in annual recurring revenue from 10.4% to 15.8%.
Saylor also introduced Bitcoin24, a service tailored to customize Bitcoin products for corporations, suggesting that Microsoft could leverage this to enhance its financial strategy. He forecasted that this pivot could see Microsoft's share price rise to $584, a significant leap from its recent valuations.