Microsoft and Bitcoin: A $5 Trillion Opportunity?

Michael Saylor, the chairman of MicroStrategy and Bitcoin maximalist, has done just that. In a bold presentation to the Microsoft board of directors, he argued that Microsoft could add $5 trillion to its market capitalization if it fully embraced Bitcoin as part of its strategy. 'If you do that, you will add hundreds of dollars to the stock price. You can create trillions of dollars in enterprise value. You can remove risk from your shareholders.' Saylor's vision for Microsoft In a 3-minute long presentation, Saylor is said to have presented 44 slides on how Microsoft could achieve unprecedented financial growth through investing in Bitcoin. He stated that by shifting cash flows, dividends, stock buybacks, and debt into Bitcoin, Microsoft could become a leader in the next big technology wave. “Microsoft cannot miss the next wave of technology, and Bitcoin is that wave,” Saylor said in a video posted on December 1st. He said this would help the stock price rise hundreds of dollars, eliminate risk for shareholders, and create trillions of enterprise value. Saylor predicts that Bitcoin could increase the stock price by an additional $584 in the next 10 years if Bitcoin reaches $1.7 million by 2034. According to him, this strategy will raise Microsoft's market capitalization from $3.18 trillion to $8.1 trillion. Investing in Bitcoin in the growth of Microsoft Saylor's idea is not new. Under his leadership, MicroStrategy has leveraged Bitcoin for significant financial growth. The company holds 386,700 BTC purchased for $21.9 billion, which is now worth $37.6 billion. This has not only increased the company's valuation but also raised its stock price by 465.5%, just in 2024 alone. Similarly, Saylor noted that Microsoft, with abundant capital and a culture of innovation, could set the standard by adopting Bitcoin. His proposition is that Bitcoin, as a rapidly appreciating asset, is a better alternative to bonds or stock buybacks. "What if you could buy a $100 billion company that grows faster than Microsoft with revenue doubling? What if you could do that every year?" Saylor asked. He emphasized that investing in Bitcoin could scale and be profitable. The context of Bitcoin is changing. Saylor made this argument at a time when Bitcoin is experiencing a strong price increase. The price has risen 120% this year and exceeded the $96,000 threshold. This is driven by increasing public and political support, as well as the proliferation of Bitcoin-related products from organizations. Trump as the new President of the United States and a supporter of cryptocurrencies is contributing to what Saylor calls the "crypto renaissance era". Wall Street companies are also launching Bitcoin-based products, further affirming the mainstream appeal of Bitcoin. Saylor said this makes a strong case for corporations like Microsoft to consider Bitcoin as a strategic asset. He said, "Buying Bitcoin means much more than buying back your own stock or holding bonds." Conclusion Michael Saylor's proposal to Microsoft is a big ask, but he fully supports investing in Bitcoin. The increasing adoption and rising price of Bitcoin make his vision feasible. When Microsoft decides what to do, Saylor is making the argument about how cryptocurrencies can disrupt the old financial system. Whether or not, Saylor is looking forward to the strong development of Bitcoin.