• MicroStrategy co-founder Michael Saylor proposed Microsoft adopt Bitcoin, projecting a potential $5 trillion boost in shareholder value by 2034.
• Saylor highlighted Bitcoin as a risk-resistant asset, offering higher returns and stability compared to Microsoft’s current capital strategies.

At Microsoft’s December 2024 shareholder meeting, Michael Saylor, co-founder of MicroStrategy, proposed a bold strategy urging the tech giant to integrate Bitcoin into its financial operations. Saylor outlined how Microsoft could redirect its $200 billion in capital distributions toward Bitcoin holdings, projecting this move could drive the company’s stock price to $584 per share and generate nearly $5 trillion in shareholder value by 2034.

Saylor presented Bitcoin as a unique corporate asset, describing it as the “universal, perpetual, profitable merger partner.” He argued that, unlike traditional mergers and acquisitions, Bitcoin lacks operational complexities and counterparty risks, offering a more streamlined and lucrative opportunity.

Highlighting Bitcoin’s 62% annual return rate compared to Microsoft’s 18%, Saylor emphasized the cryptocurrency’s ability to absorb capital while delivering superior financial returns. His analysis suggested that incorporating Bitcoin into Microsoft’s treasury strategy could reduce the company’s value-at-risk metric from 95% to 59%, while potentially increasing annual returns from 10.4% to 15.8%.

One of Saylor’s key points was Bitcoin’s resilience against counterparty risk, a significant concern for corporate treasuries. Unlike traditional assets that depend on the performance or stability of external entities, Bitcoin functions as a commodity with inherent value. Saylor argued that adopting Bitcoin could help Microsoft mitigate exposure to geopolitical and business risks, strengthening its financial foundation. He underscored this by referencing Microsoft’s current strategy of dividends and buybacks, which he claimed lacked the transformative potential of Bitcoin.

Using the open-source Bitcoin24 Model, Saylor demonstrated how Microsoft, with its current market value of approximately $3 trillion, could leverage its position to achieve substantial financial growth. He presented Bitcoin as a tool for risk management and diversification, aligning with broader corporate trends seeking uncorrelated assets to stabilize treasury holdings.

Saylor concluded with a direct appeal to Microsoft’s leadership, urging them to adopt Bitcoin for the benefit of their customers, employees, shareholders, and the company’s legacy. In October, Microsoft had already invited shareholders to vote on the potential move toward Bitcoin adoption.

Editorial Note: This news article has been written with assistance from AI. Edited & fact-checked by Harshajit Sarmah.