On December 1, 2024, Michael Saylor, Executive Chairman of MicroStrategy, delivered a compelling presentation to the board of Microsoft (MSFT), advocating for the adoption of Bitcoin as a strategic reserve. In just three minutes, Saylor emphasized the transformative potential of Bitcoin, arguing that it is a superior investment compared to holding Microsoft’s own shares.
Why Bitcoin? Saylor’s argument was grounded in solid statistics. He noted that Bitcoin is on track to become one of the most significant assets globally, with projections estimating it could represent $280 trillion of global wealth within the next 20 years. This estimate dwarfs the combined valuations of gold and art, which are expected to be valued at $45 trillion and $110 trillion, respectively.
Saylor highlighted the astonishing performance of Bitcoin relative to Microsoft’s stock over recent years. He pointed out that Bitcoin’s price has outperformed Microsoft shares by an annual margin of 12 times. Furthermore, MicroStrategy shares surged by an impressive 3,045% following its Bitcoin acquisitions, in stark contrast to Microsoft’s 103% growth during the same period.
In a bold statement, Saylor declared, “Bitcoin is the best asset that you can own. The numbers speak for themselves. It makes a lot more sense to buy Bitcoin than to buy your own stock back or hold onto bonds.” He proposed that Microsoft’s board should choose between remaining anchored to traditional financial strategies—which he believes are slow-growing and fraught with investor risk—or to embrace the innovations presented by Bitcoin, which promise accelerated growth and future financial security.
Saylor also presented a tailored product, dubbed Bitcoin24, aimed at corporations looking to invest in Bitcoin. He forecasted that if Microsoft were to indeed adopt a Bitcoin strategic reserve, its stock could rise dramatically, with prices expected to climb up to $584 per share. This strategic shift would not only enhance market capitalization, potentially soaring between $1 trillion and $4.9 trillion, but would also reduce the risk associated with Microsoft’s shares from 95% to 59% over time.
From projected annual recurring revenue growth of 10.4% to an impressive 15.8%, Saylor’s suggestion illustrates his assertive belief in the future supremacy of Bitcoin in the corporate investment landscape. With political and market support behind Bitcoin, as shown through endorsements from influential figures and the concept of Bitcoin ETFs, Saylor encourages Microsoft to join the cryptocurrency revolution before it is too late.
