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MicroStrategy co-founder and Executive Chairman Michael Saylor shared a detailed Bitcoin adoption strategy with Microsoftâs board of directors, demonstrating during the three-minute, 44-slide pitch how the tech giant could create about $5 trillion in shareholder value by going all-in on the worldâs largest and oldest cryptocurrency.
âBitcoinâs The Best Asset You Can Ownâ: Saylor
MicroStrategyâs Michael Saylor told Microsoft CEO Satya Nadella and the board of directors that Bitcoin remains the best asset the firm can own.
âMicrosoft canât afford to miss the next technology wave, and Bitcoin is that wave,â Saylor posited during a recent presentation to Microsoft. âBitcoin represents the greatest digital transformation of the 21st century that represents digital capital.â
The outspoken Bitcoin bull outlined how Microsoft could convert its current $200 billion in capital distributions into Bitcoin, stressing the potential for slashing enterprise value at risk from 95% to 59% while improving annual returns from 10.4% to 15.8%.
âBitcoin is the universal, perpetual, profitable merger partner,â Saylor told the board, comparing the strategy to acquiring âa $100 billion company growing at 60% per year at 1x revenue.â
Saylor continued to tell the board that it âmakes senseâ for Microsoft to buy $100 billion worth of Bitcoin every year instead of purchasing its own stock or holding bonds.
âYouâve surrendered hundreds of billions of dollars of capital over the past five years, and youâve just amplified the risks that your own shareholders face,â Saylor opined. âIf you want to escape that vicious cycle, youâre going to need an asset without counterparty risk.â
In his pitch, Saylor claimed that Microsoft could boost its share price by $584 per share and add up to $4.9 trillion to its enterprise value by 2034, assuming that the Wall Street behemoth converts its cash flows, dividends, buybacks, and debt into BTC â in what would represent one of the most significant corporate adoptions of the apex crypto to date.
With its $3.148 trillion market cap, Microsoft is currently the third most valuable globally, trailing behind only Apple and Nvidia Corp.
The âCrypto Renaissanceâ
Saylor further told the Microsoft board that public and political support for Bitcoin is skyrocketing and that there is a âcrypto renaissanceâ, citing pro-crypto commitments made by President-elect Donald Trump and novel Bitcoin investment vehicles introduced on Wall Street by prominent companies.
âDo the right thing for your customers, employees, shareholders, the country, the world, and your legacy,â Saylor concluded, âadopt Bitcoinâ.
Notably, the price of Bitcoin has spiked 130% so far this year â roughly 37% over the last month alone â to touch the underbelly of the highly-coveted $100,000 mark. Michael Saylorâs MicroStrategy has acquired roughly 386,700 BTC for a total of $22 billion since late 2020. Its BTC stash is now valued at $36.8 billion, with Bitcoin priced at $95,400.
MicroStrategyâs shares are up 465% year-to-date alongside the value of its Bitcoin stockpile as it continues to leverage its position and buy up more BTC. This is part of MicroStrategyâs bold â21/21â strategy announced in October, which seeks to raise $42 billion through equal amounts of stock and bond sales through 2027 to boost its Bitcoin holdings.