Why Microsoft Should Buy Bitcoin: Analysis of Michael Saylor’s Pitch

Even with a personal plea from MicroStrategy Inc.’s Michael Saylor, Microsoft Corp. has decided against following his lead in investing in Bitcoin. Saylor, who has propelled his software company into a major player in the Bitcoin market with over $40 billion in the cryptocurrency, made his case at Microsoft’s virtual shareholder meeting. Despite Saylor’s efforts, investors ultimately rejected a proposal for the board to explore adding Bitcoin to the company’s balance sheet for the long-term benefit of shareholders.

This rejection, however, is unlikely to put an end to similar attempts in the future. As Bitcoin continues to soar in value, more voices are advocating for companies to consider investing some of their reserves in the cryptocurrency as a hedge against inflation. With Bitcoin prices reaching new highs, the pressure on companies to diversify their investments is mounting.

The push for Bitcoin is also being fueled by the anticipation of crypto-friendly policies under the upcoming Trump administration. With promises of favorable regulations, Bitcoin’s resurgence in value is expected to continue. Some are even suggesting that companies could benefit from allocating a small portion of their reserves into cryptocurrency, despite the risks involved.

Many companies, including MARA Holdings Inc., Block Inc., and Tesla Inc., have already made moves to invest in Bitcoin. MicroStrategy itself has been actively acquiring Bitcoin since 2020. However, the volatile nature of the cryptocurrency market poses risks, especially if the current rally falters.

Saylor, who stepped down as CEO of MicroStrategy in 2022 to focus on promoting Bitcoin, emphasized the importance of the cryptocurrency for companies aiming to outperform. In his pitch deck shared with shareholders, Saylor projected Bitcoin’s market value to increase significantly in the coming years, outperforming traditional investments like Microsoft shares.

Despite the setback with Microsoft, the push for Bitcoin investments is likely to continue as more companies and shareholders consider the potential benefits of adding cryptocurrency to their portfolios. The debate around the role of Bitcoin in corporate finance is far from over, and the future of digital assets in traditional investment strategies remains uncertain.