Zinger Key Points
- Michael Saylor asserts Microsoft could add up to $4 trillion in market cap by integrating Bitcoin into its financial strategy.
- Saylor believes Bitcoin adoption by public companies is still in early stages, with massive growth potential as adoption increases.
- Benzinga shares with you top insiders news
MicroStrategy Inc. MSTR executive chairman Michael Saylor on Tuesday suggested that Microsoft MSFT could significantly boost its market cap by incorporating Bitcoin BTC/USD into its financial strategy.
What Happened: Speaking on CNBC, Saylor outlined how the tech giant could add up to $4 trillion to its valuation and $600 to its share price by leveraging Bitcoin in key areas like cash reserves, dividends and buybacks.
“Microsoft is buying back its stock and issuing bonds,” Saylor said. “If they simply swept their existing cash into Bitcoin, it could add a trillion dollars to their market cap and $150 to the share price.”
He further added that converting dividends into Bitcoin or replacing buybacks with Bitcoin investments could each add another trillion dollars and $150 per share.
Saylor emphasized that by embracing Bitcoin, Microsoft could transition from being “asset-poor and expectation-rich” to a more balanced position.
“Instead of surrendering capital through buybacks, they could invest in Bitcoin, grow enterprise value, and feed the digital economy of the future,” he said.
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Why It Matters: MicroStrategy has been a pioneer in institutional Bitcoin adoption, with over 400,000 BTC in its treasury.
Saylor described the company’s ongoing strategy of issuing stock and debt to acquire more Bitcoin, capturing arbitrage gains, and leveraging the cryptocurrency’s high volatility.
“Bitcoin is unique in history—it's the first scarcity commodity outperforming the S&P 500 with higher volatility,” Saylor noted.
Although he acknowledged that major corporations like Microsoft might not immediately embrace Bitcoin, Saylor sees growing interest from publicly traded companies adopting the cryptocurrency as a strategic reserve.
“Right now, we're in the second inning. Crossing $100,000 for Bitcoin will mark the third inning,” he said, projecting further growth in Bitcoin adoption.
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