Michael Saylor, the co-founder and executive chairman of MicroStrategy, is set to pitch a Bitcoin investment strategy to Microsoft's board of directors. The proposal, aimed at positioning Bitcoin as a treasury asset, comes amidst growing advocacy for the cryptocurrency's potential to enhance corporate balance sheets.
3-Minute Pitch to Microsoft Board
During a November 19 Twitter Space hosted by Bitcoin ETF issuer VanEck, Saylor announced his agreement to deliver a brief, three-minute presentation to Microsoft’s leadership. He confirmed the arrangement, saying:
“The activist that put that [Bitcoin purchase] proposal together contacted me to present to the board, and I agreed to provide a three-minute presentation.”
Despite this opportunity, Saylor's request for a separate meeting with Microsoft CEO Satya Nadella has yet to be approved.
Shareholder Proposal Spurs Debate
Saylor’s pitch aligns with a shareholder proposal urging Microsoft to evaluate Bitcoin’s role as a reserve asset. This proposal, spearheaded by the National Center for Public Policy Research (NCPPR), references MicroStrategy’s notable success with Bitcoin. While Microsoft shareholders will vote on the matter on December 10, the company’s board has recommended voting against the proposal.
The proposal’s fate will depend heavily on key institutional investors such as Vanguard, BlackRock, State Street, and Fidelity, who collectively hold significant sway over the company’s decisions.
Saylor's Advocacy for Bitcoin
Saylor, a prominent Bitcoin advocate, has consistently emphasized the cryptocurrency’s value for corporations with significant cash reserves. He has criticized companies for "burning shareholder value" by holding large cash reserves, suggesting that stocks would be more stable and less risky if a significant portion of their enterprise value were anchored in tangible assets such as Bitcoin.
Saylor further argued that tech giants like Microsoft, Apple, and Google should consider Bitcoin a superior alternative to cash reserves. Highlighting the potential for growth, the Bitcoin supporter remarked,
“If Apple bought $100 billion of Bitcoin, it would likely grow to $500 billion, and the company would have a $500 billion business growing at 20% a year.”
MicroStrategy is the largest corporate Bitcoin holder, with 252,220 BTC valued at $16.8 billion. Saylor believes integrating Bitcoin into a company’s strategy is essential for long-term value creation.
Microsoft's Current Position
Microsoft currently holds $78 billion in cash reserves and has invested in companies such as Skype and OpenAI. However, the tech giant has not ventured into Bitcoin or related assets. Saylor considers this approach shortsighted, citing MicroStrategy’s stock performance, which has outpaced Microsoft’s by 313% this year.
While the Microsoft board remains cautious, the upcoming shareholder vote could provide new insights into the corporate adoption of Bitcoin.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
