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Michael Saylor Pitches Microsoft How It Can Boost $5 Trillion Valuation with Bitcoin
12/02/2024 17:33Michael Saylor made a 3-minute detailed pitch explaining how Microsoft can add $5 trillion to its valuation by going all-in on Bitcoin.
Key Notes
- Saylor argued that redirecting cash flows, dividends, stock buybacks, and debt into Bitcoin could add $4.9 trillion to Microsoft's valuation.
- Microsoft shareholders are set to vote this December on a proposal to add Bitcoin to the company’s balance sheet.
- Saylor added that if Microsoft allocates $100 billion annually to Bitcoin, it will outperform stock buybacks and drive long-term value.
MicroStrategy executive chairman Michael Saylor made a 3-minute detailed pitch explaining how Microsoft can add $5 trillion to its valuation by going all-in on Bitcoin BTC $94 615 24h volatility: 2.8% Market cap: $1.88 T Vol. 24h: $79.16 B . In December this month, the Microsoft shareholders will vote on whether the company should add Bitcoin to its balance sheet.
In a video shared on December 1, Michael Saylor urged Microsoft to channel its cash flows, dividend payouts, stock buybacks, and debt into Bitcoin as part of its financial strategy. He wrote:
“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 also added that adding Bitcoin to its balance sheet could add up to $584 to MSFT stock over the next decade. This is provided it uses all of its Treasury, debt, cashflows, share buyback money, and dividends, to Bitcoin. Besides, it also assumes that 1 BTC will be worth $1.7million by the end of 2034.
As per Michael Saylor, this strategy would add a staggering $4.9 trillion to the company’s valuation. Microsoft is currently the third most valuable company in the world, behind Apple Inc. and Nvidia, with a market cap of $3.18 trillion.
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 the beginning of 2024, the Bitcoin price is up by 120% eyeing for its next move above $100,000 levels. On the other hand, MicroStrategy (MSTR) stock is up by a staggering 465% as it continues to raise massive funds through stock sale, debt offerings, etc. to put more Bitcoins on its balance sheet.
Since 2020, MicroStrategy, under Michael Saylor’s leadership, has acquired 386,700 BTC at a total cost of $21.9 billion. With Bitcoin now trading at $97,200, the holdings are valued at approximately $37.6 billion.
Saylor added that there’s a growing public and political support for Bitcoin calling it a “crypto renaissance”. He also noted the pro-crypto approach under the upcoming Donald Trump administration thereby offering a boost to the Bitcoin investment products launched by some of the top Wall Street firms.
Saylor added that tech giant Microsoft should be investing $100 billion every year adding that it makes more sense to buy BTC instead of buying back MSFT stock.
“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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