Michael Saylor, MicroStrategy’s executive chairman, recently challenged Microsoft to invest big in Bitcoin. He believes Microsoft should move billions from things like stock buybacks and short-term government bonds into Bitcoin.
Bitcoin: The Future of Finance?
Saylor’s argument is that Bitcoin is superior to other assets, especially in today’s AI-driven world. He highlighted Bitcoin’s significantly higher growth rate compared to Microsoft’s stock and the S&P 500. He claims that holding bonds or buying back Microsoft’s own stock is essentially destroying value, while Bitcoin offers massive potential growth.
Saylor sees Bitcoin as the “money of the 21st century,” a liquid asset unlike anything before it. He points to 2024 as a pivotal year for Bitcoin’s institutional adoption, thanks to regulatory changes.
The Microsoft Bitcoin Scenario
Saylor’s team modeled different scenarios for Microsoft adopting Bitcoin, including using excess cash, replacing dividends with Bitcoin purchases, and even using a bit of leverage. The results? A potential increase in Microsoft’s enterprise value of between $1 trillion and $5 trillion, with less risk. He urged Microsoft to stop wasting its capital.
Beyond the Numbers: A Bigger Picture
Saylor connected Microsoft’s treasury decisions to broader operational issues. He argued that constantly buying back stock puts pressure on employees, customers, and even invites regulatory scrutiny. He proposed a thought experiment: would Microsoft buy a $100 billion company growing at 60% annually? Bitcoin, he says, is essentially that opportunity, year after year.
Saylor’s final plea was a powerful one: true wealth comes from owning hard assets, not chasing short-term gains. He urged Microsoft to embrace Bitcoin and turn potential losses into growth.
The $75 Billion Question
The “$75 billion” figure represents Microsoft’s planned stock buybacks and future dividends, all potentially redirected to Bitcoin. It’s important to note that Microsoft shareholders previously voted against a proposal to add Bitcoin to the company’s balance sheet. At the time of this writing, Bitcoin was trading at around $96,521./p>