Michael Saylor advises Microsoft, ‘Bitcoin’s the best asset you can own’

MicroStrategy co-founder Michael Saylor told Microsoft CEO Satya Nadella and the board of directors that bitcoin is the best asset the company can own.

“Microsoft can't afford to miss the next technology wave, and Bitcoin is that wave,” Saylor said in a three-minute clip he shared of a recent presentation to Microsoft. “Bitcoin represents the greatest digital transformation of the 21st century that represents digital capital.”

Saylor continued to say that it “makes sense” for Microsoft to buy and hold bitcoin instead of buying its own stock back or holding bonds. 

“You've surrendered hundreds of billions of dollars of capital over the past five years, and you've just amplified the risks that your own shareholders face,” Saylor said. “If you want to escape that vicious cycle, you're going to need an asset without counterparty risk.”

The MicroStrategy co-founder claimed that Microsoft could increase its stock price by $584 per share and add $4.9 trillion to its enterprise value by 2034, assuming the company converts its cash flows, dividends, buybacks, and debt into bitcoin.

Microsoft's stock closed 0.11% higher at $423.46 on Friday. It has risen 3.67% over the past month, according to Google Finance.

Saylor’s MicroStrategy started building its strategic bitcoin reserve in 2020. It currently holds 386,700 BTC, worth over $37.7 billion at current market prices, with its most recent purchase of 55,500 BTC last month.

Driven by the rise in bitcoin's price and the company's aggressive bitcoin acquisition strategy, MicroStrategy's stock price has increased by 465% year-to-date. Its stock closed down 0.35% at $387.47 on Friday but added 2.15% in after-hours trading.