MicroStrategy chair and Bitcoin bull Michael Saylor told Microsoft’s board of directors that the firm could add almost $5 trillion to its market cap if it were to go all-in on Bitcoin.
Saylor made the point during a pitch to Microsoft’s board on why the tech giant should buy Bitcoin, whipping through 44 slides in a little over three minutes.
“Microsoft can’t afford to miss the next technology wave, and Bitcoin is that wave,” Saylor said to open his pitch in a video shared on Dec. 1, which urged Microsoft to convert its cash flows, dividend payouts, stock buybacks and debt into the cryptocurrency, adding:
“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.”
In his pitch deck, Saylor claimed Bitcoin could add up to $584 to Microsoft’s share price over the next decade if it were to use all of its treasury and debt and all of its cashflows, dividend payout, and share buyback money to buy Bitcoin — assuming 1 BTC would be worth $1.7 million by the end of 2034.
Saylor claimed this strategy could add $4.9 trillion to Microsoft’s value if it went all-in on Bitcoin. The company is currently the third most valuable in the world with its $3.18 trillion market cap, behind Apple Inc. and Nvidia Corp.
Bitcoin (BTC) has surged 120% so far this year — about 40% over the past month alone — to reach almost $100,000. Since 2020, Saylor’s MicroStrategy has purchased 386,700 BTC for a total of $21.9 billion. It is now worth nearly $37.6 billion, with Bitcoin priced at $97,200.
MicroStrategy (MSTR) shares have surged $465.5% so far in 2024 alongside the value of its Bitcoin holdings. Its shares reached a peak of $421.88 on Nov. 22, which broke past the long-held all-time high it hit just before the dot-com bubble popped in early 2000, per Google Finance.
Saylor claimed that public and political support for Bitcoin “is surging” and there is a “crypto renaissance,” noting pro-crypto statements made by incoming United States President Donald Trump and Bitcoin investment products launched by notable Wall Street firms.
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Saylor made the case that Microsoft should invest $100 billion into Bitcoin every year, claiming it “makes a lot more sense to buy Bitcoin than to buy your own stock back or to hold Bitcoin rather than holding bonds.”
“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?”
“It’s time for Microsoft to evaluate its Bitcoin strategic options,” Saylor said. “So do the right thing for the world and adopt Bitcoin.”
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