The Executive Chairman of MicroStrategy has made a big move by pitching a Bitcoin strategy to Microsoft’s board of directors.
He believes that fully adopting Bitcoin could potentially add $4.9 trillion to Microsoft’s market cap.
The case for Bitcoin
In a quick three-minute presentation, Saylor revealed that Microsoft can’t afford to miss out on what he calls the next big tech wave, Bitcoin.
He described it as the most significant digital transformation of the 21st century, labeling it digital capital that outshines all traditional forms of money, so Saylor argued that investing in Bitcoin could offer better returns than stock buybacks or holding bonds.
He pointed out that Bitcoin could represent $280 trillion of global wealth within the next 20 years, surpassing traditional assets like gold and art.
By converting cash flows, dividends, and stock buybacks into Bitcoin, Saylor believes Microsoft could unlock enormous value and boost its stock price big time.
Once in a lifetime opportunity?
Valued at $3.18 trillion, Microsoft is the third most valuable company in the world, and Saylor suggested that adopting Bitcoin could elevate its market cap by an additional $4.9 trillion.
He framed this decision as a choice between sticking with outdated financial strategies or leveraging Bitcoin for accelerated growth.
“It’s time for Microsoft to evaluate its BTC strategic options,” he urged, calling on the tech giant to make the right move for both itself and the world.
But Saylor isn’t just targeting Microsoft, because during an appearance on the PBD Podcast, he expressed confidence in his ability to convince Warren Buffett of Berkshire Hathaway to consider Bitcoin as well.
He pointed out that Berkshire’s massive cash reserves are generating only a 3% after-tax yield while facing a 15% cost of capital, leading to huge value erosion for shareholders.
MicroStrategy leads by example
Saylor has been pretty vocal about Bitcoin as a hedge against inflation and currency devaluation, encouraging companies with large cash reserves to integrate it into their financial strategies.
This approach has gained traction among various organizations, including Metaplanet and Semler Scientific, both of which have made substantial investments in Bitcoin.
MicroStrategy has been aggressive in its Bitcoin strategy, recently acquiring 15,400 BTC for $1.5 billion, bringing its total holdings to 402,100 BTC, almost 2% of all Bitcoin that will ever exist.
This strategy has paid off handsomely, with MicroStrategy’s stock growing over 460% this year alone.
Saylor argues that if Microsoft were to follow suit and invest in Bitcoin instead of focusing on dividends or stock buybacks, it could preserve trillions in value and enhance shareholder returns.
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