The president of MicroStrategy Inc. (NASDAQ:MSTR), Michael Taylorpresented to the Board of Directors of Microsoft Corp. (NASDAQ:MSFT) strong case for adopting Bitcoin (CRYPTO:BTC), projecting an increase in market capitalization of $5 trillion in the event of full adoption.
What happened
In a 3-minute presentation, Saylor called Bitcoin the “highest-yielding uncorrelated asset” a corporation can put on its books.
Citing data, he showed how Bitcoin outperformed Microsoft’s stock by up to 10 times annually over the past four years.
My 3-minute presentation to the $MSFT Board of Directors and @SatyaNadellaarticulating why the company should do the right thing and adopt #Bitcoin. pic.twitter.com/aHp91V9Slz
— Michael Saylor⚡️ (@saylor) December 1, 2024
Saylor highlighted the new wave of political support following the victory of the US president-elect, donald trumpand his selection of cabinet members, who support Bitcoin.
He also highlighted the support coming from Wall Street and major asset managers, especially with the launch of spot exchange-traded funds (ETFs) that track the Cryptocurrency.
Saylor said Bitcoin could add $584 to Microsoft’s stock price by 2034 if the company uses all of its corporate resources, including treasury, debt, cash flows, share buybacks and dividends, to acquire the cryptocurrency.
Furthermore, this strategy could contribute almost $5 trillion to Microsoft’s market capitalization, significantly reducing its enterprise value risk, currently highly dependent on future earnings forecasts.
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Why is it important
Microsoft was scheduled to vote on an assessment to invest in Bitcoin during the next shareholder meeting. Shareholders requested that the board conduct such an assessment, citing Bitcoin’s healthy gains over the past five years.
The proposal explicitly mentioned MicroStrategy, a pioneer in corporate Bitcoin adoption, whose shares have surpassed Microsoft by 2024.
In fact, MicroStrategy stock is up 459% so far this year, far outpacing Microsoft’s 13.27% return.
MicroStrategy currently holds 386,700 BTC, purchased at an average purchase price of approximately $21.94 billion and valued at more than $37 billion at current market prices, according to bitcointreasuries.net.
Bitcoin Price and MicroStrategy
At the time of writing, Bitcoin was trading at $96,555.40, up 0.03% over the past 24 hours, according to data from Benzinga Pro. MicroStrategy shares were up 2.15% in after-hours trading.
Photo courtesy of Shutterstock
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