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MicroStrategy's Michael Saylor has delivered a Bitcoin adoption strategy to Microsoft's board of directors.
Presenting at Microsoft's December 2024 shareholder meeting, Saylor proposed a transformative shift in Microsoft's treasury approach that would allocate $200 billion in capital distributions into Bitcoin holdings.
The move would enhance shareholder value and could drive its share price to $584 per share, creating nearly $5 trillion in shareholder value by 2034, Saylor argued.
My 3-minute presentation to the $MSFT Board of Directors and @SatyaNadella, articulating why the company should do the right thing and adopt #Bitcoin. pic.twitter.com/aHp91V9Slz
— Michael Saylor⚡️ (@saylor) December 1, 2024
Saylor projected a reduction in enterprise value at risk from 95% to 59% and an improvement in annual returns from 10.4% to 15.8%, stating Bitcoin is a superior asset compared to traditional dividends and stock buybacks.
"Bitcoin is the universal, perpetual, profitable merger partner," Saylor told the board, adding that the strategy akin to acquiring "a $100 billion company growing at 60% per year at 1x revenue."
He presented Bitcoin as a "universal, perpetual, profitable merger partner" and highlighted that the cryptocurrency's 62% annual return rate (ARR) outperforms Microsoft's 18% ARR.
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Saylor likened Bitcoin to acquiring a $100 billion company with consistent growth while emphasizing its independence from geopolitical or corporate performance risks.
However, he stressed that Bitcoin is a "commodity, not a company" as its value is not dependent on the performance of single entities, thus addressing critical corporate treasury concerns of counterparty risk.
By adopting Bitcoin, Saylor suggested Microsoft could insulate its financial strategy from the vulnerabilities associated with reliance on other entities, offering stability amid volatile global markets.
Using the Bitcoin24 Model simulation, Saylor explained how how Microsoft, with its current market valuation of roughly $3 trillion, $27 billion in net cash, and $70 billion in annual cash flow growing at 10%, could evolve into a significantly larger and more resilient financial powerhouse.
Saylor's remarks come as Microsoft's board actively discouraged shareholders from voting in favour of Bitcoin adoption. Microsoft already “carefully considers this topic,” the board claimed in Securities and Exchange Commission (SEC) filing.
“Past evaluations have included Bitcoin and other cryptocurrencies among the options considered, and Microsoft continues to monitor trends and developments related to cryptocurrencies to inform future decision-making."
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