Bitcoin Maxi Michael Saylor Proposes “Next Trillion Dollars” Deal To Microsoft CEO

by

As a seasoned researcher with a knack for deciphering the nuances of the financial world, I find myself intrigued by the ongoing saga between Bitcoin Maxi Michael Saylor and Microsoft CEO Satya Nadella. Having witnessed the meteoric rise of MicroStrategy under Saylor’s leadership, it’s hard not to be captivated by his vision for the future of corporate finance.

Bitcoin Maxi Michael Saylor has called on Microsoft CEO Satya Nadella to consider adopting Bitcoin as one of the company’s investments. This push comes at the same time as a shareholder proposal has been submitted with the U.S. Securities and Exchange Commission (SEC) for Microsoft to consider Bitcoin as a treasury asset.

According to Saylor, the incorporation of Bitcoin by Microsoft might yield substantial profits because Bitcoin tends to outperform traditional assets during periods of inflation.

Bitcoin Maxi Michael Saylor Points to MicroStrategy’s BTC Success

Michael Saylor, the CEO of MicroStrategy, recently posted on X (previously known as Twitter), suggesting a potential “next trillion-dollar” venture for Microsoft. He urged Satya Nadella, Microsoft’s CEO, to consider integrating Bitcoin into the company’s financial holdings. In contrast to most prominent tech companies, MicroStrategy has a substantial amount of Bitcoin. At present, they possess approximately 252,220 BTC, worth more than $17 billion, with an initial investment cost of roughly $9.9 billion.

Due to a successful approach, MicroStrategy’s stock reached an impressive peak of $235.89 this week, marking a 25-year high and ending with over a 10% increase. Notably, MicroStrategy’s market value stands at a substantial $43.6 billion, although this is significantly higher than the company’s Bitcoin holdings net worth.

The pattern here resembles Grayscale Bitcoin Trust prior to its transformation into a spot Bitcoin ETF not long ago. As suggested by Bitcoin advocate Saylor, given Microsoft’s extensive influence, adopting Bitcoin could yield substantial profits for the corporation. Over the past three years, the value of Bitcoin has increased by an impressive 971%, significantly outperforming corporate bonds and short-term treasury bills.

Nevertheless, while advocating for Microsoft to explore Bitcoin, Saylor has encountered criticism due to his viewpoint that major banks providing Bitcoin storage services could potentially be advantageous.

Potential of Bitcoin for Microsoft’s Treasury

A proposition from the National Center for Public Policy Research, put forward by one of Microsoft’s shareholders, urges the company’s board to examine Bitcoin as a possible investment option for their treasury management. This suggestion is supported by the idea that Microsoft’s current investments, which are mainly in U.S. government securities and corporate bonds, might not be enough to shield them from inflationary risks.

It suggests that a small allocation to Bitcoin, even as low as 1% of Microsoft’s total assets, could act as a hedge against currency devaluation. Moreover, Microsoft’s second-largest shareholder, BlackRock, has been a significant player in Bitcoin’s institutional adoption. Its Bitcoin ETF, known as IBIT, has been driving substantial inflows in the U.S. Bitcoin ETF market. 

This week, IBIT accumulated an additional $300 million, making the total inflows since its launch exceed $23.5 billion. This trend suggests increasing interest among institutional investors in Bitcoin investments, potentially bolstering arguments like that of Bitcoin Maximalist Michael Saylor for companies such as Microsoft to consider similar ventures.

The plan’s vote is set for December 10 during Microsoft’s yearly stockholders gathering. Interestingly, Microsoft’s board advises against it, pointing out the significant price fluctuations of Bitcoin as a primary concern.

Read More

2024-10-25 17:23