Key Points
- MicroStrategy’s Michael Saylor delivered a bold pitch to Microsoft’s board, claiming the tech giant could add $4.9 trillion to its enterprise value by 2034 by converting its cash flows, dividends, buybacks, and debt into Bitcoin.
- Saylor proposed Microsoft should invest $100 billion annually in Bitcoin, arguing it’s a better strategy than stock buybacks or holding bonds, particularly as Bitcoin’s price approaches $100,000.
The Pitch
In a concise three-minute presentation comprising 44 slides, MicroStrategy co-founder Michael Saylor made his case to Microsoft CEO Satya Nadella and the company’s board of directors. His message was clear: Bitcoin represents the most significant digital transformation of the 21st century, and Microsoft cannot afford to miss this technological wave.
“Bitcoin represents digital capital,” Saylor emphasized, suggesting that Microsoft could potentially increase its stock price by $584 per share by 2034 if it fully embraced Bitcoin. This projection assumes Bitcoin would reach $1.7 million per coin by that time.
The Strategy and Numbers
Saylor’s proposed strategy involves Microsoft redirecting its treasury, debt, cash flows, dividend payouts, and share buyback funds into Bitcoin. He argued that the current approach of buybacks and bond holdings has “surrendered hundreds of billions of dollars of capital over the past five years” and amplified shareholder risks.
The timing of Saylor’s pitch coincides with Bitcoin’s remarkable performance, having surged 120% in 2023, with a 40% increase in the past month alone. The cryptocurrency’s price has approached the $100,000 mark, demonstrating the potential Saylor sees in the digital asset.
MicroStrategy’s Bitcoin Success Story
Saylor’s credibility in making such bold recommendations stems from MicroStrategy’s own success with Bitcoin investment. As reported by Token Times AI, Since 2020 the company has accumulated 386,700 BTC, worth approximately $37.7 billion at current market prices. Their most recent acquisition included 55,500 BTC last month. This strategy has proven successful for MicroStrategy, whose stock price has increased by 465% year-to-date, recently breaking past its dot-com era all-time high.
The proposal comes at a time when Saylor observes a “crypto renaissance,” citing increasing public and political support for Bitcoin, including pro-crypto statements from political figures and the launch of Bitcoin investment products by major Wall Street firms.
