Saylor Presents Bitcoin Treasury Strategy to Executives at Microsoft
MicroStrategy Executive Chairman Michael Saylor presented a detailed Bitcoin investment strategy to Microsoft’s board of directors on December 1, 2024. He outlined how the tech giant could potentially create nearly $5 trillion in shareholder value by 2034 through various Bitcoin treasury strategies. During the December shareholder meeting, Saylor proposed that the company convert its current $200 billion in capital distributions into Bitcoin holdings. According to his analysis, this move could reduce the company’s enterprise value risk from 95% to 59% while improving annual returns from 10.4% to 15.8%.
Saylor’s projections suggest that implementing a Bitcoin strategy could push Microsoft’s stock price to $584, representing a substantial increase from its current levels. He highlighted Bitcoin’s performance metrics, noting that the cryptocurrency has demonstrated a 62% annual return rate compared to Microsoft’s 18%. In recent years, Bitcoin has outperformed Microsoft shares by 12 times annually.
To support his proposal, Saylor presented MicroStrategy’s own experience with Bitcoin investment as a case study. The company’s shares have increased by 3,045% since implementing its Bitcoin acquisition strategy, while Microsoft stock has grown by 103% during the same period.
Looking ahead, Saylor projected that Bitcoin could account for $280 trillion of global wealth in the next 20 years, surpassing gold and art. He described Bitcoin as a “universal, perpetual, profitable merger partner” and compared it to acquiring a $100 billion company growing at 60% per year at 1x revenue.
The proposal also addressed Microsoft’s current financial position, including its market value, net cash, and cash flow. Saylor suggested that Bitcoin adoption could strengthen the company’s position.
Saylor emphasized Bitcoin’s resistance to traditional business and geopolitical risks, describing it as a commodity rather than a company. He argued that its value isn’t dependent on any single entity’s performance or stability.
The timing of Saylor’s presentation follows Microsoft’s October 2024 SEC filing, where the company asked shareholders to vote on whether it should invest in Bitcoin. At that time, the board had recommended shareholders vote against the proposal.
The presentation also addressed political and market developments, with Saylor pointing to Trump’s administration stance and the introduction of Bitcoin ETF products in the stock market as factors that could drive massive adoption in the coming years.
To facilitate implementation, Saylor introduced Bitcoin24, a customized Bitcoin product solution for corporations. This tool helps simulate various Bitcoin adoption scenarios and their potential impacts on corporate finances.
The proposal presented Microsoft’s board with two options: maintain the conventional financial strategy with slower growth and increased investor risk or embrace Bitcoin as part of an innovative approach aimed at accelerated growth.
Current market data shows Bitcoin exchange balances reaching historic lows, indicating a rapid depletion of available inventory. This trend differs from patterns observed in late summer when a temporary inflow replenished exchange reserves.
Microsoft’s market capitalization currently stands at approximately $3 trillion, with steady growth in recent performance. The company’s decision regarding this Bitcoin proposal could have long-term implications for its financial strategy.
