Bitcoin Call from Michael Saylor to Microsoft
MicroStrategy President and Bitcoin advocate Michael Saylor announced that he will give a three-minute presentation to Microsoft's board of directors to explain why investing in Bitcoin will make the company's stock more stable and less risky.
This initiative is linked to Microsoft’s shareholder proposal to consider the possibility of investing in assets such as Bitcoin.
Saylor said at an X Spaces event organized by VanEck on November 19 that he was invited by an activist to present a proposal to the Microsoft board of directors.
“I was asked to present this proposal to the board and agreed to prepare a three-minute presentation,” Saylor said. He also stated that he had previously offered to have a private meeting with Microsoft CEO Satya Nadella, but this offer was not accepted.
In October, Microsoft announced that a proposal to conduct an evaluation of Bitcoin investment was among the issues that shareholders will vote on in December. This recommendation was made by the National Center for Public Policy Research (NCPPR) and cited MicroStrategy’s Bitcoin investment strategy as an example.
NCPPR emphasized that MicroStrategy’s share price has outperformed Microsoft by more than 300% this year, and that the company achieved this success despite having much less trading volume than Microsoft.
Microsoft’s board of directors recommended that shareholders vote against this proposal. The board stated that the company is currently evaluating a wide range of investments and Bitcoin is among these options.
Saylor pointed out the importance of companies investing in tangible assets such as Bitcoin in order to use their large cash reserves more efficiently.
Targeting especially large technology companies, Saylor said, “I think this issue should also be included in the agenda of companies such as Berkshire Hathaway, Apple, Google and Meta. “Because all of these companies have large cash reserves and these reserves are not used effectively in terms of shareholder value,” he said.
In the case of Microsoft, he stated that 98.5% of the company’s total value is based on quarterly earnings, and only 1.5% is supported by tangible assets. “If some of this value distribution were based on tangible assets like Bitcoin, the stock would be much less risky,” he added.
As a result of the vote to be held on December 10, the Microsoft board of directors may consider the possibility of investing in Bitcoin. However, experts think that this evaluation may put pressure on the company.
Ethan Peck stated that if Microsoft made such an assessment, its decision not to invest could be perceived negatively by shareholders.
It remains unclear whether Saylor’s proposal will come true. However, this initiative is seen as a step for Bitcoin to be more included in the investment agenda of large technology companies.
Microsoft’s board of directors, chaired by Nadella, consists of 12 senior executives from major companies such as Disney, Citigroup and Wells Fargo. This could increase the potential for innovative assets like Bitcoin to gain wider acceptance in the future.