Here is what Michael Saylor will say to Microsoft about Bitcoin

Yesterday, Michael Saylor published a video of the speech he will give to the Microsoft board regarding Bitcoin.

This is a 3-minute video presentation directed to the Board of Directors of Microsoft, and its CEO Satya Nadella, in which Saylor explains why the company should adopt Bitcoin.

Microsoft and Bitcoin: Michael Saylor insists

At this moment, there do not seem to be any direct and significant relationships between Microsoft and Bitcoin.

However, on Tuesday, December 10, the shareholders of the company will be asked to vote on the proposal to invest in Bitcoin. 

It will be an official vote that could influence the company’s policy towards BTC, but the Board of Directors has expressed a negative opinion, inviting shareholders to vote against this proposal. 

On the other hand, Microsoft has never shown a real aversion towards Bitcoin, so much so that the same Board of Directors asked Michael Saylor to explain why it might be useful for the company to invest in BTC. 

As of today, however, the outcome of this meeting is still unknown, that is, whether Saylor is managing to convince the Microsoft Board of Directors to change their mind about it and to express a bull opinion instead of a bear one. 

Michael Salyor, Microsoft and Bitcoin

Before today, there is no news of collaborations between Michael Saylor and Microsoft. 

However, the company he founded, MicroStrategy, recently reached its peak values on the stock market precisely thanks to investments in Bitcoin. 

Just think that in 2019, before starting to purchase BTC, the price of MicroStrategy shares did not exceed $16, while the all-time high recorded on November 21st surpassed $540. 

To tell the truth, in the following weeks it went back below $400, which is still a level more than 25 times higher than that of 2019. 

In his presentation to the Microsoft board, Saylor says that Bitcoin represents the greatest digital transformation of the 21st century, and that it therefore makes perfect sense for the company to purchase and hold BTC, rather than repurchasing shares or holding bonds. 

Saylor points out that Microsoft in the last five years has given up hundreds of billions of dollars in capital, among other things, precisely while MicroStrategy was instead investing in BTC causing a bull in the stock market. 

Microsoft on the Stock Exchange (MSFT)

It should not be forgotten, however, that Microsoft also recorded its all-time highs on the stock market this year. 

The highest price ever reached on the stock market by Microsoft shares is the 468$ touched at the beginning of July, while now it has slightly decreased to 430$.

In 2019, before the pandemic, the price fluctuated between $100 and $150, therefore in the meantime it has increased by about 3 and a half times. 

This performance of MSFT shares is absolutely noteworthy, but it pales in comparison to that of MicroStrategy shares. 

It is worth noting, however, that MicroStrategy on the stock market had experienced a real collapse in 2000 with the burst of the dot-com bubble, dropping from more than $300 to less than $30 in just two months. Since then, it had never managed to even come close to $300 again.

Microsoft, on the other hand, during those years had gone from almost $60 to about $30, meaning with a loss that was enormously lower. Furthermore, already in 2016, it had managed to get back above $60. 

The two situations therefore do not seem comparable. 

Bitcoin (BTC): the most resilient asset

According to Michael Saylor, Microsoft cannot afford to miss the next technological wave, namely Bitcoin, which represents digital capital.

The founder of MicroStrategy states that, in the long term, risks such as taxes, politics, recession, regulation, war, and weather conditions could destroy over 10 trillion dollars a year in capital.

The solution, according to him, would be Bitcoin, the digital capital, which would serve to avoid these risks. 

Saylor defines Bitcoin as “an asset without counterparty risk,” and indeed this is correct if the BTC are properly stored on non-custodial wallets. 

However, there is a risk, and it is due to a non-technical but financial counterpart, the market. 

It should still be highlighted that, in the event of a positive vote on December 10, the price of Bitcoin could react with another rise, because Microsoft could open the doors to dozens or hundreds of other similar investments. 

Just consider that Microsoft alone has a market capitalization of more than 3.2 trillion dollars, while Bitcoin has a market capitalization of less than 1.9 trillion. The impact that even minimal investments from many companies similar to Microsoft could have on the price of BTC could be significant.