TLDR
Michael Saylor presented Bitcoin investment strategy to Microsoft’s board, projecting potential share price increase to $584
He claims Bitcoin could outperform Microsoft shares by 12x annually
Microsoft’s market cap could grow to $1-4.9 trillion with Bitcoin adoption
Bitcoin projected to reach $280 trillion in global wealth over 20 years
Proposal suggests converting $200 billion in capital distributions to Bitcoin holdings
MicroStrategy Executive Chairman Michael Saylor presented a detailed Bitcoin investment strategy to Microsoft’s board of directors on December 1, 2024, outlining how the tech giant could potentially create nearly $5 trillion in shareholder value by 2034 through various Bitcoin treasury strategies.
During his three-minute presentation at Microsoft’s 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%.
Microsoft’s stock currently trades at $423.46, showing a 14% increase year-to-date. Saylor’s projections suggest that implementing a Bitcoin strategy could push the share price to $584, representing a substantial increase from current levels.
The presentation highlighted Bitcoin’s performance metrics, with Saylor noting that the cryptocurrency has demonstrated a 62% annual return rate compared to Microsoft’s 18%. He emphasized that Bitcoin has outperformed Microsoft shares by 12 times annually in recent years.
MicroStrategy’s own experience with Bitcoin investment was presented as a case study. The company’s shares have increased by 3,045% since beginning 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 both gold at $45 trillion and art at $110 trillion. He characterized Bitcoin as a “universal, perpetual, profitable merger partner,” comparing it to acquiring “a $100 billion company growing at 60% per year at 1x revenue.”
The proposal addresses Microsoft’s current financial position, which includes approximately $3 trillion in market value, $27 billion in net cash, and $70 billion in cash flow growing at 10% annually. Saylor suggested this position could be strengthened through Bitcoin adoption.
In his presentation, Saylor emphasized Bitcoin’s resistance to traditional business and geopolitical risks. He described Bitcoin as a “commodity, not a company,” arguing 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. The board had recommended shareholders vote against this proposal at the time.
Political and market developments were also addressed in the presentation. Saylor pointed to Trump’s administration stance and the introduction of Bitcoin ETF products in the stock market as factors that could drive massive adoption in coming years.
To assist with 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 distinct paths: 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, with on-chain data indicating a rapid depletion of available inventory. This trend contrasts with patterns observed in late summer when a temporary inflow replenished exchange reserves.
Microsoft currently maintains a market capitalization of approximately $3 trillion, with recent performance showing steady growth. The company’s decision regarding this Bitcoin proposal could influence its financial strategy for years to come.
