Bitcoin Strategy: What Saylor Told Microsoft’s Leadership

Michael Saylor, Executive Chairman of MicroStrategy and a prominent Bitcoin evangelist, has held his 3-minute presentation to the Microsoft (MSFT) Board of Directors and CEO Satya Nadella, articulating why the company should adopt BTC as a reserve asset.

Why Microsoft Should Adopt Bitcoin: Saylor

Saylor, who was invited to present his insights, emphasized the critical importance of embracing the leading cryptocurrency as a cornerstone of modern financial strategy. “Microsoft can’t afford to miss the next technology wave and Bitcoin is that wave,” Saylor declared at the outset of his presentation. He continued, “Bitcoin represents the greatest digital transformation of the 21st century. It represents digital capital.”

Delving into the mechanics of global wealth distribution, Saylor highlighted the dichotomy between utility-providing assets and those dedicated to capital preservation. “Global wealth is distributed across assets that provide utility and others that preserve Capital, but risk is destroying trillions of dollars of that Capital every single year,” he explained.

Saylor articulated BTC’s superiority over traditional forms of capital preservation, stating, “Digital capital is economically and technically superior to physical capital, and it represents a revolutionary advance in capital preservation.” He projected a significant expansion of Bitcoin as asset class, asserting, “The asset class itself is growing from trillions to hundreds of trillions of dollars and it is backed by digital power along with political and economic power.”

Addressing the strategic financial decisions faced by large corporations like Microsoft, Saylor made a strong case for BTC’s central role. “It makes sense for Microsoft to be powered by digital capital. Bitcoin’s the best asset you can own. The numbers speak for themselves,” he stated unequivocally.

He contrasted a BTC investment with traditional corporate financial maneuvers, arguing, “it makes a lot more sense to buy Bitcoin than to buy your own stock back or to hold Bitcoin rather than holding bonds if you’re going to outperform. You’re going to need Bitcoin and those bonds are undermining your options market and your equity liquidity.”

Saylor also underscored the burgeoning institutional and governmental support, reinforcing its viability as a strategic asset. “Luckily you have an alternative. Public support for Bitcoin is surging, as is political support, as is support for the US Bitcoin strategic reserve, as is Wall Street support and the president of the United States says ‘never sell your Bitcoin.’”

Framing the current period as a transformative era, Saylor proclaimed, “We’re entering year one of the crypto Renaissance and you have a choice to make: cling to the past or embrace the future.”

He cautioned against the financial stagnation associated with traditional investment strategies, stating, “You’ve surrendered hundreds of billions of dollars of capital over the past five years and you’ve just amplified the risks that your own shareholders face.”

He added, “if you want to escape that vicious cycle, you’re going to need an asset without counterparty risk. What if you could buy a hundred billion dollar company growing faster than Microsoft for one time revenue? What if you could keep doing it every single year? it’s time for Microsoft to evaluate its Bitcoin strategic options.”

To facilitate the integration of BTC into Microsoft’s financial operations, Saylor also introduced an open-source model. “We’ve created an open-source model, you can plug in your own assumptions. You can convert your cash flows and your dividends and your buybacks and your debt into Bitcoin,” he explained.

He projected substantial financial benefits from this integration, claiming, “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 and you can prosper on the Bitcoin standard. So do the right thing for the world and adopt Bitcoin.”

The community reactions have been swift and varied following Saylor’s presentation. Luke Broyles from The Bitcoin Adviser commented via X: “58 slides in 191 seconds… or 3.2 seconds per slide. It is brilliant, hilarious, and frankly sad that Microsoft would only allow a 3 minute presentation from Michael Saylor. Brilliant to cover so many slides so investors/shareholders have to review them all. Hilarious that he was actually able to do it.”

As reported by Bitcoinist, Microsoft shareholders are currently voting on whether the company should invest in BTC. The proposal, prompted by a shareholder initiative, suggests using corporate funds to purchase BTC.

Microsoft’s board of directors has urged shareholders to reject the proposal, arguing against the strategic fit and potential risks associated with an investment. Shareholders can participate in the voting process online via proxy ahead of Microsoft’s annual shareholder meeting on December 10, 2024.

At press time, BTC traded at $96,331.

Featured image from YouTube, chart from TradingView.com