Michael Saylor made a promise to Microsoft’s executive board to showcase the benefits of Bitcoin in just three minutes, and he successfully delivered.
The Executive Chairman of MicroStrategy, Michael Saylor, presented the concept of a Bitcoin strategic reserve to Microsoft (MSFT) boards on December 1, as he had previously promised. He emphasized that Bitcoin represents a significant shift in digital capital, advocating for its adoption as part of Microsoft’s balance sheet within the next few years.
Bitcoin is anticipated to become one of the most valuable assets globally, projected to account for $280 trillion of total worldwide wealth, surpassing gold and art, which are expected to reach $45 trillion and $110 trillion over the next two decades, respectively.
Saylor pointed out that Microsoft must leverage digital capital, as Bitcoin’s price movement has outperformed Microsoft shares by 12 times on an annual basis. Additionally, MicroStrategy (MSTR) shares rose an astounding 3,045% following their Bitcoin acquisitions in recent years, compared to MSFT’s 103% increase.
“Bitcoin is the best asset you can possess. The numbers speak for themselves. It makes far more sense to invest in Bitcoin than to repurchase your own stock or hold bonds. If you want to excel, you need Bitcoin,” Saylor stated during his presentation featured on YouTube.
Support from political and market leaders, evidenced by Trump’s administration and Bitcoin ETF offerings in the stock market, is expected to drive widespread Bitcoin adoption in the coming years, which Microsoft should consider as well.
Michael Saylor presents options
Saylor provided Microsoft’s board with a choice: stick with traditional financial strategies that grow slowly and heighten investor risk, or revamp that approach by adopting the future of Bitcoin for accelerated growth.
He also introduced Bitcoin24 to the boards, which tailors Bitcoin products for corporations, predicting that Microsoft shares could climb to $584 based on the current share price.
The company’s market capitalization could potentially soar between $1 trillion and $4.9 trillion per share if it adopts a Bitcoin strategic reserve.
Additionally, while the value generated from adopting Bitcoin is projected to reduce Microsoft shares’ risk from 95% to 59%, the annual recurring revenue is expected to increase from 10.4% to 15.8%.