Michael Saylor publishes his Bitcoin presentation for Microsoft
At the end of October, a filing with the US Securities and Exchange Commission (SEC) revealed that Microsoft shareholders will be able to vote on whether the company should consider investing in Bitcoin at the Annual General Meeting on December 10 - Blocktrainer.de reported.
The shareholder proposal "Assessment of Investing in Bitcoin" came from the think tank National Center for Public Policy Research (NCPPR). However, the Board of Directors advised voting against it, as Bitcoin already plays a role in the search for suitable investments and a separate assessment is therefore not necessary.
The activist Microsoft shareholders also asked Michael Saylor, the founder of MicroStrategy, the largest corporate holder of Bitcoin, to submit a three-minute presentation to convince the Board of Directors of the merits of Bitcoin. Saylor announced this in an audio discussion on the platform 𝕏 and also revealed that his offer to talk to Microsoft CEO Satya Nadella had been turned down - Blocktrainer.de reported.
Yesterday, Michael Saylor finally shared his short video presentation on 𝕏. In it, he emphasizes that the world's third-largest company should "do the right thing" - and that is to back Bitcoin.
Do the right thing for the world and adopt Bitcoin.
Michael Saylor's closing statement in the presentation
Why Microsoft should bet on Bitcoin
Saylor begins the presentation with the statement that Microsoft cannot afford to miss out on the next technological wave - i.e. Bitcoin. After all, Bitcoin is digital capital and is technically and economically superior to other asset classes. According to the MicroStrategy founder, this is why more and more investors are turning to Bitcoin.
As a result, Saylor predicts that Bitcoin will account for a significantly larger share of global assets in the next 21 years and reach a market capitalization that is around 140 times higher than the current one.
The asset class itself is growing from trillions to hundreds of trillions of dollars.
Michael Saylor in the presentation
Saylor backs up the fact that Bitcoin could be worthwhile as an investment for Microsoft with the performance of the asset since MicroStrategy adopted the Bitcoin strategy in August 2020. Since then, BTC has achieved an annualized return of 62 percent, compared to just 18 percent for Microsoft shares.
Saylor concludes that it makes much more sense for the company to bet on Bitcoin instead of resorting to the usual uses for excess capital.
Bitcoin is the best asset you can own. The numbers speak for themselves. It makes a lot more sense to buy bitcoin than to buy your own stock back, or to hold bitcoin rather than holding bonds. If you're going to outperform, you're going to need bitcoin.
Michael Saylor in the presentation
The MicroStrategy founder then draws attention to the fact that the next US president and BlackRock CEO Larry Fink are now campaigning for Bitcoin. He also refers to Donald Trump's statement "never sell your Bitcoin" at the Bitcoin conference in Nashville.
Public support for Bitcoin is surging. As is political support. As is support for the US strategic bitcoin reserve. As is Wall Street support. And the President of the United States says: "never sell your Bitcoin". That's why we're entering year one of the crypto renaissance. And you have a choice to make.
Michael Saylor in the presentation
Saylor's recommendation for Microsoft
As is usual for Saylor, and as he has also done in the context of the US Bitcoin reserve, among others, he shows various Bitcoin strategies that differ in their vehemence and correspondingly in their outcome.
With regard to Microsoft, the minimum adoption of the asset would be to convert only the company's balance sheet and cash flows into Bitcoin.
In addition, however, there would also be the option of Bitcoin purchases instead of paying out dividends and share buybacks - which together have amounted to around 40 billion US dollars in recent years.
The "triple maxi" strategy would also involve issuing bonds to acquire more Bitcoin, as MicroStrategy is doing.
If Microsoft were to take the strongest approach, it could more than pay off. According to Saylor's base case scenario, the "triple maxi" strategy would allow the company to gain an additional USD 4.9 trillion in market capitalization by the end of 2034.
Although Bitcoin is considered risky by many market observers, the MicroStrategy founder explains that companies can significantly reduce their risk with a Bitcoin strategy.
Saylor emphasizes not only that Bitcoin has no counterparty risk and is not exposed to the usual dangers that traditional assets are exposed to, but also that a company valuation based to a large extent on expected future company figures can be problematic.
Microsoft soon with a Bitcoin strategy?
Whether the majority of Microsoft shareholders will vote in favor of the company taking a closer look at a Bitcoin strategy will become clear in just a few days on December 10. However, even then it would not mean that the company would necessarily buy Bitcoin.
However, Michael Saylor could make an important contribution to this happening one day with his compact presentation. Despite the strong arguments in favor and the positive developments surrounding Bitcoin, it still seems unrealistic for the time being whether this will encourage the board of directors of the big tech company to rethink their position.
Although - apart from Tesla - the really big companies have not yet decided to buy Bitcoin, the "second wave of institutional adoption" is currently taking place. Some public limited companies have decided to implement a Bitcoin strategy this year - Blocktrainer.de reported.
Michael Saylor is playing a central role in this. For example, he recently got in touch with the CEO of the USD 2 billion public company Rumble. Shortly afterwards, the company announced that it would now be using Bitcoin as a reserve asset - Blocktrainer.de reported.
Introducing a Bitcoin strategy as a company has the potential to create a great deal of shareholder value. Michael Saylor not only demonstrated this impressively in the presentation, he also provided the "proof of concept" with MicroStrategy. Since the first Bitcoin purchase, the share has been the best performing of the major US shares.
Even if it doesn't look like the big players will be pursuing an aggressive Bitcoin strategy any time soon, the idea is gaining popularity, reaching more and more influential people. Sooner or later, big company decision makers are likely to realize that the longer they ignore Bitcoin's success, the less they stand to gain from it.
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