Key Takeaways
- Michael Saylor is set to present a three-minute pitch to Microsoft’s board advocating Bitcoin investment for stability.
- Saylor previously attempted to discuss the matter privately with Microsoft CEO Satya Nadella, but the offer was declined.
- Microsoft’s board recommends against Bitcoin assessment.
Michael Saylor’s Proposal to Microsoft’s Board
Michael Saylor, Chairman of MicroStrategy, will present a three-minute pitch to Microsoft’s board advocating for Bitcoin investment.
The proposal originated from an activist who asked Saylor to make the case for Bitcoin’s benefits to Microsoft.
Saylor previously attempted to discuss the matter privately with Microsoft CEO Satya Nadella, but the offer was declined.
Microsoft’s board will vote on Dec. 10 to decide whether to assess Bitcoin as an investment option.
The Argument for Bitcoin Adoption
Saylor argues that Bitcoin could stabilize Microsoft’s stock by increasing its tangible asset base.
He claims 98.5% of Microsoft’s enterprise value depends on quarterly earnings, making it overly leveraged to market fluctuations.
MicroStrategy’s Bitcoin strategy has outperformed Microsoft’s stock by over 300% in the past year, despite being a smaller company.
Saylor suggests other major firms like Apple and Google should also consider Bitcoin to avoid losing shareholder value.
Microsoft’s Response and Potential Implications
Microsoft’s board has recommended voting against the Bitcoin proposal, citing its existing evaluation of investible assets.
The National Center for Public Policy Research, which backs the proposal, believes it could force Microsoft into a challenging position.
Should the proposal pass, Microsoft would need to explain its decision if it opts against Bitcoin investment after conducting the assessment.
