In a recent X Spaces discussion hosted by VanEck, Saylor revealed he would have just three minutes to make his case for why the tech giant should add Bitcoin to its balance sheet.

The Pitch

Saylor’s presentation will highlight how Bitcoin could make Microsoft a “more stable and less risky stock.” Despite an earlier attempt to privately meet with Microsoft CEO Satya Nadella to discuss the matter, Saylor’s proposal will now go directly to the board.

“The activist who submitted this proposal asked me to present it, and I agreed. I’ll provide the three-minute presentation — that’s all you’re allowed — to the board of directors,” Saylor explained.

The proposal aligns with a shareholder motion from the National Center for Public Policy Research (NCPPR), which will be voted on in December. The motion requests that Microsoft assess the potential benefits of investing in Bitcoin, citing MicroStrategy’s Bitcoin strategy as a benchmark.

Of course, Microsoft’s board has already recommended shareholders vote against the proposal, playing the card that they already keep a close eye on “a wide range of investable assets.” But does that stance hold water? Sure, Microsoft may track assets, but what’s the point if they remain perpetually on the sidelines while other companies dive in and reap the rewards? Just look at MicroStrategy. With an aggressive Bitcoin investment strategy, the business intelligence firm has outperformed Microsoft by over 300% this year. And remember, this is a company operating with a fraction of Microsoft’s resources, workforce, and market power.

Michael Saylor poking the bear, Source: X

Outperforming Microsoft

The NCPPR’s proposal underscores MicroStrategy’s remarkable 2023 performance. Despite being a significantly smaller company, MicroStrategy’s stock outperformed Microsoft by over 300% this year, largely due to its aggressive Bitcoin strategy.

Saylor has long advocated for Bitcoin as a way for companies to preserve shareholder value, especially those holding large cash reserves. He suggested that firms like Apple, Google, Meta, and even Berkshire Hathaway should consider similar strategies.

“Microsoft’s enterprise value is 98.5% leveraged to its quarterly earnings, while only 1.5% is based on tangible assets,” Saylor noted. “Adding Bitcoin could make the stock more stable and less risky, tying a portion of its value to tangible property.”

Challenges Ahead

The Microsoft board, however, has recommended voting against the proposal, arguing that it already evaluates a broad spectrum of investment opportunities, including Bitcoin.

Ethan Peck, deputy director of the NCPPR’s Free Enterprise Project, told Cointelegraph that a formal assessment of Bitcoin could corner Microsoft into an uncomfortable position. If the company evaluates Bitcoin but decides not to invest, it risks scrutiny from shareholders.

High-Stakes Vote

The shareholder vote is scheduled for Dec. 10, with the outcome potentially influencing Microsoft’s financial strategy. Currently, the board includes 12 members, including CEO and chairman Satya Nadella, alongside executives from major corporations like The Walt Disney Company, Citigroup, Wells Fargo, and GSK.

For Saylor, the stakes are not just about Microsoft but about setting a precedent for other companies with substantial cash reserves. “It’s not a bad idea to put this on the agenda for every major company,” he stated.

While the proposal faces opposition from Microsoft’s board, its inclusion in the December vote signifies a growing dialogue around Bitcoin’s role in corporate finance. Whether Microsoft will embrace Bitcoin or remain on the sidelines could have broader implications for institutional adoption of digital assets.