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MicroStrategy’s Michael Saylor Proposes Bitcoin Strategy to Microsoft Board

Kelvin

Saylor Advocates Bitcoin as Treasury Asset in Microsoft Presentation

Michael Saylor, Executive Chairman of MicroStrategy plans to pitch his BTC investment strategy to Microsoft's board. This presentation is set for November 19, and discussion organized by Bitcoin ETF issuer VanEck, to deliberate on how Bitcoin could be incorporated into Microsoft's financial portfolio.

This has arisen from a shareholder resolution that sought to urge Microsoft to determine the effect of Bitcoin on its balance sheet. Saylor, who has turned MicroStrategy into the largest corporate holder of the token, sees it as a perfect tool for corporations with large cash reserves. Additionally, MicroStrategy has 252 BTC, or about $16.8 billion, under its management. Saylor-led bets have historically delivered considerable market outperformance.

Corporate Cash Management and Bitcoin

The context for Saylor's imminent presentation is marked by his use of social media, where he has called on Microsoft CEO Satya Nadella to look at Bitcoin to add a trillion dollars to Microsoft's shareholder value. However, Microsoft leadership is not completely confident about such claims. The board also formally opposed the resolution expressing that the firm constantly assesses diverse investment opportunities, such as Bitcoin.

Furthermore, Microsoft has a robust cash reserve of $78 billion cash. This is mostly used in investments in different stakes, including acquisitions like Skype and partnership with OpenAI. Saylor's pitch points to the need to reconsider traditional cash reserve strategies due to disruptive stability and reduced financial risk. This comes at a time when more tech firms are increasingly searching for financial strategies in the changing economic environment.

The Role of Shareholders and Future Prospects

Main shareholders like Vanguard, BlackRock, State Street, and Fidelity will participate actively in the voting process for this proposal, which is set for December 10. Their stances could compel other tech giants to rethink their investment approaches, especially regarding cryptocurrencies.

Saylor's strategy to position Bitcoin as an alternative form of business cash reserves implies that leading technology firms such as Apple and Google could benefit from allocating a portion of their huge cash reserves to Bitcoin. He argues that this might not only protect their asset base but also greatly increase it, following the pattern of MicroStrategy.