Michael Saylor Urges Microsoft to Embrace Bitcoin at Bitcoin for Corporations 2025
At the esteemed Bitcoin for Corporations 2025 event, MicroStrategy’s executive chairman Michael Saylor delivered a powerful keynote, urging one of the tech industry’s cash-rich giants to pivot its financial strategy. Addressing an audience of chief financial officers and treasury executives, Saylor proposed that Microsoft redirect its vast reserves from share buybacks and short-term Treasuries into Bitcoin. He touted the cryptocurrency as “the universal, perpetual, profitable merger partner” that surpasses all other treasury assets in the artificial intelligence era.
The Case for Microsoft to Invest in Bitcoin
Saylor drew a compelling comparison, highlighting, “Over the past five years, Microsoft’s value increased by 18% annually, while Bitcoin surged by 62%.” He emphasized that the S&P 500’s compound growth rate of approximately 14% sets the benchmark for evaluating corporate capital allocation. “When you adjust for the cost of capital, Microsoft’s true outperformance is 4%, while Bitcoin’s is an impressive 48%. Bonds yield negative returns, so why hold onto an asset that’s eroding capital when Bitcoin is compounding almost 50% above the cost of money?” he queried.
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Saylor scrutinized Microsoft’s current financial strategy, stating, “Investing in bonds means losing 99.7% of your capital over a decade. Buying back your own stock is slightly less damaging—it’s a 97% loss. On the other hand, investing in Bitcoin could be ten times more beneficial than repurchasing MSFT shares.”
Bitcoin: The Future of Monetary Epochs
Saylor’s argument is rooted in his belief that Bitcoin heralds a new monetary era. “While gold served as the currency of the 19th century and sovereign debt of the 20th, Bitcoin emerges as the 21st-century currency—the first liquid, fungible capital asset devoid of counterparty risk,” he explained. He pinpointed 2024 as the “year zero” for Bitcoin’s institutional recognition, with the SEC’s approval of spot ETFs and FASB’s shift to fair-value accounting. By 2025, this represents “year one,” with the window for first-mover advantage rapidly narrowing.
To underscore the potential benefits, Saylor disclosed that his team utilized the open-source “Bitcoin 24” treasury-modeling tool to analyze Microsoft’s financials. They stress-tested four scenarios: reallocating excess cash into Bitcoin, substituting dividends with Bitcoin purchases, replacing stock buybacks with Bitcoin accumulation, and incorporating a slight leverage. “Depending on the configuration, this could enhance Microsoft’s share value by $155 to $584, potentially adding one to five trillion dollars in enterprise value while mitigating risk,” he asserted.
Treasury Policies and Operational Impacts
The keynote reached emotionally charged moments as Saylor linked treasury policies with operational challenges. “Divesting $200 billion amplifies every risk factor in your prospectus. It pressures your employees and customers, compelling them to enter long-term contracts and purchase more than they need. This leads to competitor complaints and regulatory scrutiny—all because you’re chasing quarterly volatility that could be hedged by holding a non-correlated hard asset,” he cautioned.
He posed a thought-provoking challenge to Microsoft’s board: “If you could acquire a hundred-billion-dollar company growing at 60% annually at one-times revenue, would you do it? What if this opportunity was available every year, indefinitely?” Saylor proposed, “That’s Bitcoin. Ironically, the least risky acquisition conceivable is perceived as risky by traditional finance.”
Bitcoin as a Strategic Financial Asset
Saylor concluded with a passionate appeal: “Wealth isn’t about future cash flows; it’s about owning hard assets. I’d rather invest in a prosperous company than one that depletes its resources, promising to work harder and continuously raise prices on customers.” He urged, “You can cling to 20th-century capital—treasury bills, stock buybacks, dividends—or you can embrace the future, capitalize on Bitcoin, and transform a decapitalization spiral into sustainable growth. This benefits your customers, employees, shareholders, country, and legacy. Adopt Bitcoin.”
The buzz around the proposed $75 billion Bitcoin investment reflects Microsoft’s authorized buyback and two years of forward dividends consolidated into a single digital-asset allocation. Interestingly, Microsoft shareholders previously voted against adding Bitcoin to the company’s balance sheet during a December 10 meeting.
At the time of reporting, Bitcoin traded at $96,521.
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