Michael Saylor, CEO of MicroStrategy and a prominent Bitcoin evangelist, gave a 3-minute presentation to the Microsoft (MSFT) Board of Directors and CEO Satya Nadella, explaining why the company should adopt Bitcoin as a reserve asset.
Why Microsoft Should Adopt Bitcoin: Saylor
Saylor, who was invited to provide his thoughts, stressed the critical importance of embracing the leading cryptocurrency as a cornerstone of modern financial strategy. “Microsoft can’t miss the next technology wave, and Bitcoin is that wave,” Saylor declared at the beginning of his presentation. He continued: “Bitcoin represents the greatest digital transformation of the twenty-first century. It represents digital capital.”
By delving into the mechanisms of global wealth distribution, Saylor highlights the dichotomy between assets that provide facilities and those dedicated to capital preservation. He explained: “Global wealth is distributed across assets that provide benefit and others that preserve capital, but risks destroy trillions of dollars of this capital every year.”
Saylor explained Bitcoin’s superiority over traditional forms of capital preservation, saying: “Digital capital is economically and technologically superior to physical capital, and represents a revolutionary advance in capital preservation.” He predicted a significant expansion of Bitcoin as an asset class, stressing that “the asset class itself is growing from trillions to hundreds of trillions of dollars and is supported by digital power alongside political and economic power.”
Addressing the strategic financial decisions faced by large companies like Microsoft, Saylor made a strong case for Bitcoin’s central role. “It makes sense for Microsoft to rely on digital capital. Bitcoin is the best asset you can own. The numbers speak for themselves,” he said unequivocally.
He compared investing in bitcoin to traditional corporate financial maneuvers, saying: “It makes sense to buy bitcoin instead of buying your stocks back or hold bitcoin instead of holding bonds if you’re going to outperform. You will need Bitcoin and these bonds undermine the options market and the liquidity of your stocks.
Saylor also emphasized growing institutional and government support, which enhances its viability as a strategic asset. “Fortunately you have an alternative. Public support for Bitcoin is growing, as is political support, as is support for the US Strategic Bitcoin Reserve, as is support for Wall Street and the President of the United States says ‘never sell your Bitcoin’.”
“We are entering the first year of the crypto renaissance, and you have a choice: cling to the past or embrace the future,” Saylor declared, framing the current period as a transformative one.
He warned against the financial stagnation associated with traditional investment strategies, saying: “You have given away hundreds of billions of dollars of capital over the last five years and you have just inflated the risks faced by your shareholders.”
He added: “If you want to escape this vicious cycle, you will need an asset without counterparty risk. What if you could buy a $100 billion company that was growing faster than Microsoft for one-time revenue? What if you could keep doing that every year.” “It is time for Microsoft to evaluate its strategic options for Bitcoin.”
To facilitate the integration of Bitcoin into Microsoft’s financial operations, Saylor also introduced an open source model. “We’ve created an open source model that you can add your own assumptions to,” he explained. “You can convert your cash flows, your profits, your buybacks, and your debt into Bitcoin,” he explained.
He predicted significant financial benefits from this integration, claiming: “If you do this, you will add hundreds of dollars to the stock price. You can create trillions of dollars in enterprise value. You can strip shareholders of risk and you can prosper using the Bitcoin standard. So do the right thing for the world and adopt Bitcoin.” “
Community response was quick and varied after Saylor’s presentation. Luc Broyles from Bitcoin Advisor Comment Via Y’all and it’s funny that he was actually able to do that.
As reported by Bitcoinist, Microsoft shareholders are currently voting on whether the company should invest in BTC. This proposal, put forward at the initiative of shareholders, proposes using corporate funds to buy Bitcoin.
Microsoft’s board urged shareholders to reject the proposal, citing strategic inappropriateness and potential risks associated with the investment. Shareholders can participate in online voting via proxy prior to Microsoft’s annual shareholders meeting on December 10, 2024.
At press time, Bitcoin was trading at $96,331.
Featured image from YouTube, chart from TradingView.com
Comments are closed, but trackbacks and pingbacks are open.