Saylor Urges Microsoft to Adopt Bitcoin

MicroStrategy co-founder Michael Saylor has proposed a transformative Bitcoin adoption strategy to Microsoft’s board of directors, claiming it could generate nearly $5 trillion in shareholder value by 2034. Speaking at Microsoft’s December 2024 shareholder meeting, Saylor outlined how leveraging Bitcoin in corporate treasury management could significantly enhance the tech giant’s financial performance.

Currently trading at $423.46, Microsoft’s stock has risen 14% year-to-date, according to Google Finance. Saylor argued that Bitcoin could further propel Microsoft’s growth by optimizing its $200 billion in capital distributions.

The Case for Bitcoin

Reducing Risk, Increasing Returns

Saylor’s strategy emphasized Bitcoin’s potential to improve Microsoft’s annual returns from 10.4% to 15.8% while reducing enterprise value at risk from 95% to 59%. He framed Bitcoin as the “universal, perpetual, profitable merger partner,” likening the cryptocurrency to acquiring a $100 billion company with a 60% annual growth rate at just 1x revenue.

Unlike traditional mergers and acquisitions (M&A), Bitcoin doesn’t carry operational risks or integration complexities. Instead, it offers an always-available asset with superior returns, boasting a 62% annual return rate (ARR) compared to Microsoft’s 18% ARR.

A Hedge Against Counterparty Risks

Saylor highlighted Bitcoin’s unique ability to minimize counterparty risks—critical for corporate treasuries. Unlike traditional assets that depend on external entities for performance, Bitcoin operates as a decentralized commodity, independent of geopolitical or business uncertainties.

“Bitcoin is a commodity, not a company,” Saylor stressed. He argued that Bitcoin’s value remains uncorrelated with any single entity, making it an attractive option for risk management in treasury strategies.

Bitcoin’s Financial Potential for Microsoft

Using the Bitcoin24 Model, an open-source Bitcoin adoption simulation, Saylor demonstrated how Microsoft could transform its $3 trillion market value, $27 billion in net cash, and $70 billion in annual cash flow into a more robust financial position.

He proposed reallocating Microsoft’s capital distributions into Bitcoin holdings, which could serve as a hedge while delivering higher returns compared to the current dividend and buyback approach.

Microsoft’s Growing Interest in Bitcoin

In October 2024, Microsoft asked its shareholders to vote on a Bitcoin investment proposal, signaling a growing curiosity about the cryptocurrency’s potential. Saylor’s presentation builds on this momentum, making a strong case for corporate adoption.

“Do the right thing for your customers, employees, shareholders, the country, the world, and your legacy,” Saylor urged. “Adopt Bitcoin.”

Broader Implications

Saylor’s pitch to Microsoft underscores Bitcoin’s increasing relevance in corporate treasury management. If adopted, Microsoft’s Bitcoin strategy could mark one of the most significant corporate crypto moves to date, potentially reshaping how other global giants view digital assets.

As Bitcoin approaches the $100,000 milestone, Saylor’s vision highlights the broader trend of businesses seeking innovative ways to maximize shareholder value while minimizing risk in an uncertain global economy.