tl;dr

MicroStrategy co-founder Michael Saylor presented a Bitcoin adoption strategy to Microsoft's board of directors, outlining how the tech giant could potentially increase its stock value to $584 per share and create nearly $5 trillion in shareholder value by 2034 through Bitcoin treasury strategies. S...

MicroStrategy Co-Founder Michael Saylor Presents Bitcoin Adoption Strategy to Microsoft's Board of Directors

MicroStrategy co-founder Michael Saylor presented a Bitcoin adoption strategy to Microsoft's board of directors, outlining how the tech giant could potentially increase its stock value to $584 per share and create nearly $5 trillion in shareholder value by 2034 through Bitcoin treasury strategies. Saylor emphasized Bitcoin's potential as a perpetual, profitable merger partner for Microsoft, highlighting its high annual return rate and resistance to traditional business and geopolitical risks.

Using the Bitcoin24 Model, he illustrated how Microsoft could significantly enhance its financial position through Bitcoin adoption. Microsoft shareholders were later asked to vote on whether the company should invest in Bitcoin.

Speaking at Microsoft's December 2024 shareholder meeting, Saylor's presentation outlined how Microsoft could convert its current $200 billion in capital distributions into Bitcoin holdings, showing potential for reducing enterprise value at risk from 95% to 59% while improving annual returns from 10.4% to 15.8%.

Saylor framed Bitcoin as a unique type of corporate acquisition target for Microsoft, presenting data that shows Bitcoin's 62% annual return rate (ARR) compared to Microsoft's 18% ARR, one that doesn't come with the typical complexities and risks of traditional mergers and acquisitions (M&A).

Bitcoin is an always-available acquisition target that could absorb capital while delivering superior returns compared to Microsoft's current strategy of dividends and buybacks, Saylor said.

Saylor also framed Bitcoin as uniquely resistant to traditional business and geopolitical risks. His emphasis on "counterparty risk" addressed a key concern for corporate treasuries: the need to depend on other entities' performance, stability, or cooperation. When combined with his earlier slides showing Microsoft's current 95% value-at-risk metric, this point becomes more powerful: Saylor is essentially arguing that Microsoft's current treasury strategy leaves them exposed to all these counterparty risks while Bitcoin offers a path to reduce that exposure significantly.

Using the Bitcoin24 Model, Saylor demonstrated how Microsoft could transform its current position—approximately $3 trillion in market value with $27 billion in net cash and $70 billion in cash flow growing at 10% annually—into a substantially larger and more robust financial foundation.

In October, Microsoft asked its shareholders to vote on whether it should invest in Bitcoin. "Do the right thing for your customers, employees, shareholders, the country, the world, and your legacy," Saylor concluded, making a final push for what would represent one of the most significant corporate Bitcoin adoptions to date. "Adopt Bitcoin."

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 3 Dec 24
 3 Dec 24
 3 Dec 24