Microsoft Should Buy $78 Billion Worth of Bitcoin
As someone who has used Microsoft products my whole life, it pains me to see they are fumbling the bag on Bitcoin. The company's $78 billion in cash reserves are losing value daily. Meanwhile, they stubbornly refuse to f...
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As someone who has used Microsoft products my whole life, it pains me to see they are fumbling the bag on Bitcoin. The company's $78 billion in cash reserves are losing value daily. Meanwhile, they stubbornly refuse to follow MicroStrategy's proven winning strategy — convert those melting dollars to scarce Bitcoin!
Microsoft announced a couple of months ago that it would buy back shares up to $60 billion; it seems like this did nothing to increase the stock price. Imagine if they had bought Bitcoin instead. That money would have been much more powerful if allocated to Bitcoin. The company would likely have added hundreds of billions in market cap.
Just look at MicroStrategy. In just four years, they turned their $1 billion company into $100 billion by adopting Bitcoin as a treasury reserve asset. They are now the most compelling and successful story in corporate finance, with the best-performing stock in the last four years, beating every US company – even NVIDIA.
Yet Microsoft clings to an outdated financial strategy, destroying shareholder value. Microsoft should follow its technology instincts, not faulty financial logic. There is no long-term viability in holding cash.
I was listening to X Spaces yesterday, during which MicroStrategy's CEO Michael Saylor revealed that he offered to explain Bitcoin's benefits privately, but Microsoft's CEO Satya Nadella rejected the meeting. Now, he is making a last-ditch appeal by presenting a 3-minute Bitcoin proposal to Microsoft's board.
Earlier, the board already advised shareholders to reject assessing Bitcoin's potential upside. Nonetheless, I am interested to see how this meeting will turn out. Saylor is a great educator, so you never know.
They should realise that no corporate treasury asset like Bitcoin can enhance enterprise value. Even a small $5 billion Bitcoin allocation could add tens of billions in market cap.
Look, Microsoft, the choice is clear - hoard melting dollars or embrace uncensorable digital gold. Your shareholders are begging you to buy Bitcoin. It's time to listen before that $78 billion completely disappears. This is your fiduciary duty as Bitcoin continues mass adoption.
This article is a Take. Opinions expressed are entirely the author's and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.
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