MicroStrategy Chairman Michael Saylor plans to deliver a brief presentation to Microsoft’s board, advocating for Bitcoin investment as a way to make the company’s stock more stable and less risky.
Saylor’s Three-Minute Pitch
On Nov. 19, Saylor revealed during a VanEck-hosted X Spaces event that he had agreed to present a three-minute proposal to Microsoft’s board of directors. The proposal will outline the potential benefits of Microsoft adopting Bitcoin as part of its investment strategy.
“The activist who initiated this proposal invited me to present to the board, and I agreed,” Saylor said. He also noted that his prior offer to meet privately with Microsoft CEO Satya Nadella to discuss the matter was declined.
Microsoft’s Bitcoin Proposal
In October, Microsoft disclosed that shareholders would vote in December on whether the company should conduct an assessment of Bitcoin as an investment. This proposal, brought forward by the National Center for Public Policy Research (NCPPR), highlights the success of MicroStrategy’s Bitcoin strategy.
According to the NCPPR, MicroStrategy’s share price outperformed Microsoft by over 300% this year, despite MicroStrategy conducting only a fraction of the business.
Saylor believes this idea should extend beyond Microsoft.
“It ought to be on the agenda for companies like Berkshire Hathaway, Apple, Google, and Meta,” Saylor stated, emphasizing the potential for Bitcoin to preserve shareholder value.
Why Saylor Advocates for Bitcoin
Saylor argued that Microsoft’s enterprise value is primarily tied to quarterly earnings, with only 1.5% of its stock value stemming from tangible assets. He claims that holding Bitcoin could stabilize the stock and reduce risk by anchoring a larger portion of its value to a tangible, decentralized asset.
“A stock would be far more stable and less risky if half its enterprise value came from tangible assets like Bitcoin,” Saylor explained.
Opposition from Microsoft’s Board
Microsoft’s board of directors, which includes CEO Satya Nadella and executives from major corporations like Citigroup, Wells Fargo, and Disney, has recommended voting against the Bitcoin proposal. They argue that the company already evaluates a variety of investment opportunities, including Bitcoin.
Despite this, Ethan Peck, deputy director of the NCPPR’s Free Enterprise Project, stated that if Microsoft conducts an assessment and decides not to invest in Bitcoin, it could face increased scrutiny over its decision.
