Michael Saylor Proposes Microsoft Add Bitcoin to Boost Valuation by $5 Trillion
MicroStrategy executive chairman Michael Saylor presented a pitch on how Microsoft can potentially increase its valuation by $5 trillion through significant investments in Bitcoin #BTC. Shareholders will vote in December on whether to add Bitcoin to the company's balance sheet.
In a video released on December 1, Saylor encouraged Microsoft to allocate cash flows, dividends, stock buybacks, and debt into Bitcoin as part of its financial strategy. He stated:
“If you do that, you’ll add hundreds of dollars to the stock price. You can create trillions of dollars of enterprise value. You can strip away risk from your shareholders. Microsoft can’t afford to miss the next technology wave, and Bitcoin is that wave.”
Saylor estimated that this strategy could increase MSFT stock by up to $584 over the next decade, assuming full utilization of Treasury funds, debt, cash flows, share buyback funds, and dividends for Bitcoin purchases. This projection also depends on Bitcoin reaching a value of $1.7 million by the end of 2034.
According to Saylor, this approach could contribute an additional $4.9 trillion to Microsoft's current market cap of $3.18 trillion, making it the third most valuable company globally, behind Apple Inc. and Nvidia.
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
Michael Saylor Steering MicroStrategy’s Success with Bitcoin
Since early 2024, Bitcoin's price has increased by 120%, approaching the $100,000 mark. Concurrently, MicroStrategy (MSTR) stock has surged by 465% as the company continues to raise substantial funds through stock sales and debt offerings to acquire more Bitcoins.
Under Saylor's leadership since 2020, MicroStrategy has purchased 386,700 BTC at a total cost of $21.9 billion, with current holdings valued at approximately $37.6 billion based on Bitcoin trading at $97,200.
Saylor noted increasing public and political support for Bitcoin, referring to it as a "crypto renaissance." He highlighted a favorable pro-crypto environment under the anticipated Donald Trump administration, which could enhance Bitcoin investment products offered by major Wall Street firms.
Saylor proposed that Microsoft invest $100 billion annually in Bitcoin instead of repurchasing MSFT stock, stating, “What if you could buy a $100 billion company growing faster than Microsoft for one times revenue? What if you could keep doing it every single year?” He urged Microsoft to evaluate its strategic options regarding Bitcoin.