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MicroStrategy Executive Chairman Michael Saylor has affirmed that Microsoft’s adoption of Bitcoin in its balance sheet could skyrocket its market value.
Will Microsoft Adopt Bitcoin?
In a recent CNBC interview, Saylor remarked on Microsoft’s upcoming voting. On December 10, Microsoft will hold a vote to decide whether to include Bitcoin in its balance sheet strategy or not. He explained how the tech giant could boost its valuation by up to $4 trillion and its share price by $600 through Bitcoin adoption.
Saylor said that Microsoft could leverage Bitcoin across several key financial operations, including cash reserves, dividends, and share buybacks. “If they simply swept their existing cash into Bitcoin, it could add a trillion dollars to their market cap and $150 to the share price,” Saylor stated.
During the interview, he also remarked, “We’re in the second inning. Crossing $100,000 for Bitcoin will mark the third inning.”
“It’ll remain volatile because it’s a 24/7, 365 global asset. You can panic sell on Saturday night, buy on Sunday morning. That’s a feature, not a bug,” said Michael @Saylor as @MicroStrategy buys 15,400 #Bitcoin at $96,000 per coin. https://t.co/RjdutPw6WQ
— Squawk Box (@SquawkCNBC) December 3, 2024
He further elaborated that converting dividends into Bitcoin or using Bitcoin in place of buybacks could each contribute an additional trillion dollars to the company’s valuation. The MicroStrategy co-founder emphasized that Bitcoin’s capped supply and high volatility make it a unique asset, outperforming traditional commodities like gold and silver.
“Bitcoin is the first scarce commodity in history that is outperformed the S&P 500 with higher volatility,” Saylor noted.
Saylor believes that through Bitcoin adoption, Microsoft could transition from being “asset-poor and expectation-rich” to a more balanced and future-focused enterprise. “Instead of surrendering capital through buybacks, they could invest in Bitcoin, grow enterprise value, and feed the digital economy of the future,” he suggested.