Michael Saylor Pitches Microsoft How It Can Boost $5 Trillion Valuation with Bitcoin

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As a researcher with over two decades of experience in the tech industry, I find Michael Saylor’s pitch to Microsoft intriguing. His conviction in Bitcoin as the next big technology wave is not unfounded, given the impressive growth trajectory of this digital asset.

In a recent presentation spanning three minutes, Michael Saylor, Executive Chairman of MicroStrategy, outlined his compelling argument that if Microsoft fully embraces Bitcoin, it could potentially boost their market capitalization by an astounding $5 trillion. This proposition is set to be put before Microsoft shareholders for a vote in December this year.

On December 1, Michael Saylor advocated for Microsoft to redirect its earnings, dividend distributions, share repurchases, and debts towards Bitcoin, suggesting this move as a key aspect of their financial planning. In his words:

Performing that action could significantly boost the stock’s price by hundreds of dollars. Not only that, but it holds the potential to generate trillions in market value. It also reduces risk for your shareholders. Given Microsoft’s standing, they can’t afford to overlook the next major technological advancement, and Bitcoin seems to be just that.

In simpler terms, Saylor suggested that if Microsoft were to allocate all its Treasury, debt, cash flows, funds from share buybacks, and dividends towards Bitcoin, this move could potentially increase MSFT’s stock value by approximately $584 over the next ten years. This prediction is based on an assumption that one Bitcoin will be worth a staggering $1.7 million by the year 2034.

According to Michael Saylor’s estimation, this strategy could potentially boost the company’s total worth by an astounding $4.9 trillion. Currently, Microsoft ranks third in global value among corporations, following Apple Inc. and Nvidia, with a market capitalization of approximately $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.

— Michael Saylor⚡️ (@saylor) December 1, 2024

Michael Saylor Steering MicroStrategy’s Success with Bitcoin

Starting from January 2024, Bitcoin’s price has soared by 120%, aiming for a leap beyond the $100,000 mark. Simultaneously, MicroStrategy’s (MSTR) stock has surged an astounding 465% as it aggressively gathers funds via stock sales and debt offerings to amass more Bitcoins for its financial records.

Under the guidance of Michael Saylor, MicroStrategy has amassed 386,700 Bitcoins since 2020, spending a total of around $21.9 billion. Currently, with Bitcoin trading at roughly $97,200, the value of their holdings is estimated to be about $37.6 billion.

Saylor pointed out that there’s increasing public and political backing for Bitcoin, which he referred to as a “crypto revival.” Moreover, he mentioned the favorable stance towards cryptocurrencies under the incoming Trump administration, potentially bolstering Bitcoin investment offerings from prominent Wall Street companies.

Saylor contended that tech titan Microsoft ought to allocate a staggering $100 billion annually for investment, arguing furthermore that it might be wiser to invest in Bitcoin rather than repurchasing Microsoft (MSFT) shares.

Imagine having the opportunity to purchase a rapidly expanding $100 billion company, even faster than Microsoft, at just its annual revenue. And imagine being able to do this every year! Michael Saylor suggests that it’s high time for Microsoft to consider its strategic options regarding Bitcoin. He urges them to make the ethical choice and embrace Bitcoin.

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2024-12-02 13:46