Michael Saylor, the Executive Chairman of MicroStrategy, recently proposed an ambitious strategy that could reportedly see Microsoft add $4.9 trillion to its market value by 2034. Saylor's pitch centers around the idea that Microsoft should embrace Bitcoin to fuel its growth and mitigate risks associated with traditional investments like stock buybacks and bonds. 

The proposal was shared in a presentation on December 1, where Saylor emphasized that Bitcoin represents a transformative wave in technology, urging Microsoft to seize the opportunity.

Saylor's Vision: Converting Cash Flows to Bitcoin

Saylor’s core suggestion is for Microsoft to convert its cash flows, dividends, stock buybacks, and even its debt into Bitcoin. He argues that this strategy could significantly boost Microsoft’s stock price while reducing risks for shareholders. By following this path, Saylor claims Microsoft could potentially add up to $584 per share to its stock price within the next decade.

He explained that the traditional methods Microsoft uses, such as buying back stock or holding bonds, are not as beneficial in the long run. Saylor argues that these actions have “surrendered hundreds of billions of dollars” over the past five years and have amplified risks for shareholders. In contrast, Bitcoin offers an asset with no counterparty risk, which he believes makes it a more stable and lucrative choice for the company.

Saylor bases this projection on the assumption that Bitcoin will reach a value of $1.7 million per coin by 2034. The MicroStrategy Chair proposes that Microsoft allocate $100 billion annually to invest in Bitcoin, underscoring that Bitcoin’s growth potential far surpasses traditional investments. 

Currently, Microsoft holds a market cap of $3.18 trillion, placing it as the third most valuable company globally, behind Apple and Nvidia. 

MicroStrategy’s Experience with Bitcoin

Since 2020, MicroStrategy has amassed 386,700 BTC, currently valued at over $37.7 billion. The company’s decision to hold Bitcoin has had a transformative effect on its stock, which has surged by over 465% in 2024. 

Saylor also pointed out that the growing public and political support for Bitcoin could further benefit the Bitcoin strategy. He cited pro-crypto statements from U.S. President-elect Donald Trump and the increasing number of Bitcoin-related financial products being introduced by major Wall Street firms. 

With Bitcoin’s value already surging by 120% in 2024, Saylor believes it’s an opportune time for companies like Microsoft to make the leap into Bitcoin investments.