Saylor: Bitcoin Could Boost Microsoft’s Value by $5 Trillion and $584 Per Share by 2034

Highlights:

• Saylor urged Microsoft to adopt Bitcoin, calling it the next major technology wave.
• He suggested Bitcoin could boost Microsoft’s stock to $584 and add $4.9 trillion in value.
• Saylor recommended investing in Bitcoin to reduce risks and avoid counterparty exposure.

MicroStrategy co-founder Michael Saylor shared a Bitcoin (BTC) adoption strategy with Microsoft CEO Satya Nadella and the board of directors. He stressed that Microsoft must not miss out on Bitcoin, describing it as the next major technology wave. Saylor these remarks in a three-minute clip from a recent presentation to Microsoft. 

According to him, Bitcoin represents the greatest digital transformation of the 21st century and embodies digital capital. He backed this claim with data showing Bitcoin outperformed Microsoft’s shares by up to 10X annually over the last four years. MicroStrategy co-founder explained how Bitcoin could boost Microsoft’s value, increasing its stock to $584 per share and adding $4.9 trillion to its enterprise value by 2034. To achieve this, Saylor said the company must utilize its treasury, debt, cash flows, buybacks, and dividends to purchase the BTC.

My 3-minute presentation to the $MSFT Board of Directors and @SatyaNadella, articulating why the company should do the right thing and adopt #Bitcoin. pic.twitter.com/aHp91V9Slz

— Michael Saylor⚡️ (@saylor) December 1, 2024

Bitcoin Has ‘No Counterparty Risk’

Saylor suggested it would be more logical for Microsoft to invest in Bitcoin rather than repurchasing its own stock or holding bonds. He pointed out that the company had given up hundreds of billions in capital over the last five years, increasing risks for its shareholders. To break this cycle, he recommended choosing an asset like Bitcoin that has no counterparty risk.

Saylor pointed out the growing political support for Bitcoin following President-elect Donald Trump’s victory and the selection of cabinet members who favor the cryptocurrency. He also mentioned the backing from Wall Street and major asset managers, especially with the launch of spot exchange-traded funds (ETFs) tracking Bitcoin.

Microsoft Stock Shows Steady Growth Amid Bitcoin Strategy Discussion

Microsoft’s stock closed 0.11% higher at $423.46 on Friday. The stock has risen 3.67% over the past month and increased by 14%, according to Google Finance data.

During Microsoft’s December 2024 shareholder meeting, Saylor presented a strategy on how the company could convert its current $200 billion in capital distributions into Bitcoin holdings. He demonstrated that this approach could reduce the enterprise value at risk from 95% to 59%. Additionally, it could improve annual returns from 10.4% to 15.8%.

Saylor’s MicroStrategy began building its strategic BTC reserve in 2020. The company currently holds 386,700 BTC, valued at over $37.7 billion at current market prices. MicroStrategy’s most recent purchase was 55,500 BTC last month. Driven by Bitcoin’s price increase and MicroStrategy’s aggressive acquisition strategy, the company’s stock price has risen by 465% year-to-date. On Friday, MicroStrategy’s stock closed down 0.35% at $387.47 but gained 2.15% in after-hours trading.

In addition to the recent developments, on November 27, SOS Limited, a China-based blockchain and commodity trading company, announced that its Board of Directors approved a plan to invest $50 million in Bitcoin. 

JUST IN: 🇯🇵 Japanese public company Remixpoint announces to buy ¥500 million worth of #Bitcoin pic.twitter.com/zzGdNiH4Zg

— Bitcoin Magazine (@BitcoinMagazine) November 27, 2024

On November 12, Singapore-based Genius Group made its first $120 million Bitcoin purchase. Shortly after, the AI startup increased its BTC holdings with an additional $14 million purchase. Metaplanet, a Tokyo-based company, began buying Bitcoin in early April as part of its strategy to invest in alternative assets.