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.
Saylor, an advocate for Bitcoin, stated that if Microsoft were to adopt Bitcoin, it could generate significant returns due to inflation that affects other assets.
Bitcoin Maxi Michael Saylor Points to MicroStrategy’s BTC Success
Michael Saylor, CEO of MicroStrategy, recently took to X (formerly Twitter) to propose a “next trillion-dollar” opportunity for Microsoft. He encouraged Microsoft CEO Satya Nadella to incorporate Bitcoin into the company’s balance sheet. MicroStrategy, unlike most major tech firms, holds a significant amount of Bitcoin. As of now, the company holds 252,220 BTC, currently valued at over $17 billion, with a total acquisition cost of around $9.9 billion.
This strategy has reaped benefits as MicroStrategy’s stock soared to $235.89, a 25-year high this week, and closed with more than 10% gains. MicroStrategy’s market capitalization, in addition, is currently $43.6 billion, which is rather high in comparison to the company’s net asset value of its BTC holdings.
This pattern is similar to Grayscale Bitcoin Trust before its conversion to the spot Bitcoin ETF recently. Bitcoin Maxi Saylor has suggested that due to Microsoft’s size and clout, integrating with Bitcoin could be very profitable for the company. In the last three years, the price of Bitcoin has rose by over 971% which is much better than corporate bond and short term treasury bills.
However, despite his calls for Microsoft to consider BTC, Saylor has faced some backlash for suggesting that big banks offering Bitcoin custody might be beneficial.
Potential of Bitcoin for Microsoft’s Treasury
A shareholder proposal, submitted by the National Center for Public Policy Research, calls on Microsoft’s board to assess Bitcoin as a potential asset for its treasury management. The proposal underscores that Microsoft’s existing investments, primarily in U.S. government securities and corporate bonds, may not be sufficient to protect against inflation.
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 recorded another $300 million in inflows, bringing total inflows since inception to more than $23.5 billion. This shows growing demand among institutional investors for Bitcoin exposure, which could support Bitcoin Maxi Michael Saylor’s argument for Microsoft to explore similar opportunities.
The vote on this proposal is scheduled for December 10 at Microsoft’s annual shareholder meeting. However, Microsoft’s board has recommended a vote against it, citing Bitcoin’s high volatility as a key risk factor.
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