MicroStrategy Inc. MSTR Chairman Michael Saylor pitched a strong case for Bitcoin BTC/USD adoption to the Microsoft Corp. MSFT board, projecting a $5 trillion market cap addition in case of a full embrace.
What happened: In a 3-minute presentation, Saylor called Bitcoin the "highest performing uncorrelated asset" a corporation can have on its books.
Citing data, he showed how Bitcoin beat Microsoft’s shares by up to 10X annually over the past four years.
Saylor highlighted the new wave of political support after President-elect Donald Trump's victory and his choice of cabinet picks who support Bitcoin.
He also noted the support coming from Wall Street and top asset managers. with the launch of spot exchange-traded funds (ETFs) tracking the cryptocurrency.
Saylor said Bitcoin could add $584 to Microsoft’s stock price by 2034 if the company employs all its corporate resources, including treasury, debt, cashflows, buybacks, and dividends, to purchase the cryptocurrency.
Additionally, this strategy could contribute nearly $5 trillion to Microsoft's market capitalization while significantly reducing its enterprise value at risk, which is currently heavily reliant on future earnings forecasts.
Why It Matters: Microsoft was set to vote on an assessment of investing in Bitcoin during the upcoming shareholders meeting. The shareholders requested the board conduct the assessment, citing Bitcoin's healthy gains over the last five years.
The proposal explicitly mentioned MicroStrategy, a pioneer in corporate Bitcoin adoption, whose shares have outperformed Microsoft in 2024.
Indeed, MicroStrategy’s stock was up 459% year to date, well outperforming Microsoft’s 13.27% returns.
MicroStrategy currently holds 386,700 BTC, acquired at an average purchase price of approximately $21.94 billion, and worth over $37 billion at current market prices, according to bitcointreasuries.net.
Price Action: At the time of writing, Bitcoin was trading at $96,555.40, up 0.03% in the last 24 hours, according to data from Benzinga Pro. Shares of MicroStrategy were up 2.15% in after-hours trading.
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