Michael Saylor, a billionaire with a keen eye for cryptocurrency, has managed to transform MicroStrategy, the company he co-founded, into a bold reflection of Bitcoin’s potential. His advocacy for integrating Bitcoin into corporate finances didn’t stop there. He’s been nudging Microsoft to dip into its extensive reserves and join him in embracing the digital currency.
However, during Microsoft’s annual shareholder meeting on Tuesday, Saylor’s proposal was met with a resounding “no” from investors.
Back in October, Microsoft had informed its shareholders that the National Center for Public Policy Research, known for its conservative stance, planned to recommend that Microsoft diversify its assets by including Bitcoin. This proposal aimed to prepare the tech giant’s finances for the future.
Saylor, now serving as MicroStrategy’s executive chairman, has witnessed his company’s stock skyrocket by nearly 500% this year alone, thanks to aggressive Bitcoin acquisitions.
“Microsoft should ride the wave of the next major technological transformation, and Bitcoin is at the crest of that wave,” Saylor expressed through a video presentation uploaded to X last week, which has since garnered over 3 million views.
In this brief three-minute video, he illustrated Bitcoin’s remarkable annual returns of 62% from August 2020 to November 2024, compared to Microsoft’s 18% and the S&P 500’s 14%. Bonds, on the other hand, showed a disappointing 5% loss.
“You have the opportunity to transform your cash flows, dividends, buybacks, and debt into Bitcoin,” Saylor stated. “By doing this, you can significantly boost your stock’s value.”
This isn’t the first time Saylor has pitched this idea to Microsoft, which, by the end of September, was sitting on a hefty $78.4 billion in cash and short-term investments.
Microsoft’s October proxy filing revealed that its treasury team had already assessed Bitcoin and other cryptocurrencies for potentially funding operations while mitigating economic risks. The team plans to continue monitoring the crypto world for any new developments that could inform future strategies.
The day following the shareholder meeting, Saylor took to X to engage directly with Microsoft’s CEO, Satya Nadella.
“Hey @SatyaNadella, if you’re aiming for the next trillion-dollar milestone for $MSFT shareholders, let’s have a conversation,” Saylor wrote.
Despite his efforts, the proposal didn’t sway a majority of shareholders, following Microsoft’s recommendation for rejection and guidance from proxy advisors Glass Lewis and Institutional Shareholder Services, who both advocated for a no vote.
Microsoft’s finance chief, Amy Hood, pointed out during the shareholder meeting that Microsoft began accepting cryptocurrency payments in 2014. “We’re continually evaluating the development of crypto,” she said.
Although Microsoft shares are up about 19% this year, they still trail far behind MicroStrategy’s performance.
MicroStrategy, now worth around $83 billion, is closely tied to Bitcoin’s fate. In mid-2020, the previously moderate software firm declared its intent to invest in Bitcoin, revealing plans to allocate $250 million towards “one or more alternative assets,” which included digital currencies like Bitcoin. At that time, MicroStrategy’s market value was just $1.1 billion.
As of December 8, the company and its subsidiaries hold approximately 423,650 bitcoins, purchased at a collective cost of about $26.5 billion. With Bitcoin priced at $95,000, these holdings are valued at over $41.3 billion.
To fund these purchases, MicroStrategy has been issuing stock and raising debt. On November 21, the company announced it had finalized a $3 billion convertible debt sale “to acquire additional Bitcoin and for general corporate purposes.”
Saylor’s wealth has soared to $9.1 billion, largely due to his significant stake in MicroStrategy, as reported by Forbes.
For more about Michael Saylor on MicroStrategy and Bitcoin, check this out.
