The founder of MicroStrategy, the largest Bitcoin investor among public companies, Michael Saylor explained why tech giant Microsoft should invest in the cryptocurrency. The company may make a decision as early as December 10, 2024.
According to the businessman, the purchase of BTC will result in an increase in the company’s capitalization by $5 trillion. He presented his vision in three-minute presentationthe goal of which is to persuade MicroStrategy’s shareholders and board of directors to invest the organization’s assets in Bitcoin.
MicroStrategy, Microsoft – what’s going on
At the end of October 2024, the non-profit organization The National Center for Public Policy Research approached Microsoft with a proposal to invest part of the company’s assets in Bitcoin. Such a step, according to the authors of the initiative, will help the technology giant diversify its investment portfolio and protect savings from inflation. The National Center for Public Policy Research also emphasized that the purchase of BTC could support the growth of Microsoft shares, as happened in the case of MicroStrategy.
The company agreed to put the proposal to a vote, which will take place December 10, 2024.
Microsoft’s top management assessed the prospects for investing the company’s funds in BTC and called on shareholders to vote against it. The problem is that the second-largest share of the tech giant’s securities belongs to BlackRock, the issuer of the largest spot Bitcoin ETF. Representatives of the organization see prospects in crypto-investments and in every possible way promote the ideas of popularizing digital assets.
Microsoft’s largest investor is asset manager Vanguard. Amid the hype around the Bitcoin ETF, its representatives came out strongly against the instrument. In their opinion, crypto is not the best solution in terms of long-term prospects.
Microsoft’s third largest shareholder, State Street holding company, also has a positive outlook on crypto investments.
Microsoft’s largest shareholders. Source: marketscreener
The voting weight of Microsoft shareholders when deciding on the prospects for investing the company’s funds in BTC will be equivalent to shares of shares. That is, the opinion of those who have more securities will be more important when making the final decision.
The combined holdings of pro-cryptocurrency stocks BlackRock and State Street are greater than Vanguard’s. However, even this situation does not guarantee a positive decision on Microsoft’s investment in Bitcoin, since there are other investors.
Why does Sailor need Microsoft?
Michael Saylor is one of the main crypto activists. Using the example of MicroStrategy, he proved the effectiveness of cryptocurrency investments, which helped attract the attention of other large companies to Bitcoin.
The more giants invest in crypto, the more chances the crypto market has for growth. For MicroStrategy, which already owns 1.841% from the issue of Bitcoin and regularly increases its BTC reserve, Microsoft is one of the most desirable allies. Let us remind you that the technology giant closes the top 3 largest companies by market capitalization. Investments by such a large corporation in BTC can significantly increase the interest of market participants in the crypt.
Microsoft is in the top 5 largest companies by market capitalization. Source: companiesmarketcap
At the end of November, Sailor announced his readiness to present to the technology giant a strategy for investing in BTC, which outlines all the advantages of the solution. And so it appeared 44 page presentation. In it, Saylor compares the investment attractiveness of various types of classical instruments with crypto, and also shows how MicroStrategy’s decision to invest in BTC changed the company’s financial performance for the better.
A presentation of Microsoft’s Bitcoin strategy also appeared on the MicroStrategy YouTube channel.
In Saylor’s presentation, they predict a rapid increase in Microsoft’s profitability if a positive decision is made to purchase BTC. Also, investments in crypto, in his opinion, will help the technology giant strengthen its position in the market. To achieve this effect, Saylor proposes that Microsoft invest $100 billion a year in Bitcoin.
Reaction of the crypto community
Representatives of the crypto industry found Sailor’s presentation is extremely convincing. In their opinion, the arguments presented by the businessman should force the Microsoft board of directors to reconsider its attitude towards crypto-investments, and the corporation’s shareholders to vote for the purchase of BTC.
Stay informed! Subscribe to World Stock Market in Telegram.
Source: Cryptocurrency
I am an experienced journalist and writer with a career in the news industry. My focus is on covering Top News stories for World Stock Market, where I provide comprehensive analysis and commentary on markets around the world. I have expertise in writing both long-form articles and shorter pieces that deliver timely, relevant updates to readers.
