Saylor Presents Bitcoin Investment Proposal to Microsoft Board
Michael Saylor, Chairman of MicroStrategy, will present a three-minute pitch to Microsoft's board of directors advocating for Bitcoin investment. He aims to demonstrate how Bitcoin could stabilize Microsoft’s stock and reduce risk.
Set a reminder for this post-US election bombshell discussion with @SenLummis, @saylor, @matthew_sigel @JanvanEck3 as they dive into lessons from El Salvador’s Bitcoin experiment for the US, next steps for Senator Cynthia Lummis' BITCOIN Act (the strategic BTC reserve) and…
— VanEck (@vaneck_us) November 8, 2024
This initiative is backed by the National Center for Public Policy Research (NCPPR), which commended MicroStrategy's Bitcoin (BTC) strategy, noting that MicroStrategy's stock has outperformed Microsoft's this year. Saylor previously sought a private discussion with Microsoft CEO Satya Nadella, but his request was declined. He intends to present directly to the board instead.
Saylor contends that major companies like Microsoft, Apple, and Google are missing investment opportunities by not allocating funds to Bitcoin. He argues that these firms diminish shareholder value by failing to diversify their assets. Allocating part of their enterprise value to tangible assets like Bitcoin could enhance stock stability and long-term value.
Microsoft's board includes executives from Disney, Citigroup, and Wells Fargo, who have recommended voting against Saylor's proposal, stating they already consider various investment options, including Bitcoin. The vote on this shareholder initiative is scheduled for December 10, potentially requiring Microsoft to publicly explain any decision against Bitcoin investment.
Saylor asserts that Bitcoin can reduce the risk associated with Microsoft’s stock by anchoring its value in tangible assets. He estimates that 98.5% of Microsoft’s valuation is linked to quarterly earnings, with only 1.5% tied to physical assets. Incorporating Bitcoin may strengthen this foundation and bolster shareholder confidence.
Despite skepticism from Microsoft leadership, the proposal has ignited broader discussions on corporate cash management strategies. If successful, Saylor's pitch could encourage other large corporations to explore Bitcoin as a legitimate investment option, potentially altering corporate finance approaches.