Michael Saylor to Pitch Bitcoin Strategy to Microsoft Board

Michael Saylor, Chairman of MicroStrategy and a well-known Bitcoin advocate, is set to deliver a three-minute pitch to Microsoft’s board of directors, urging the tech giant to consider adding Bitcoin to its corporate strategy. The opportunity comes as Microsoft prepares to vote on a shareholder proposal related to Bitcoin investments this December.

Saylor’s Three-Minute Window

Speaking during a Nov. 19 X Spaces event hosted by VanEck, Saylor revealed that he was contacted by the activist group behind the proposal to present to Microsoft’s board.

“I’ve agreed to provide a three-minute presentation — that’s all you’re allowed — and I’m going to present it to the board of directors,” Saylor said.

While Saylor had previously offered to meet privately with Microsoft CEO Satya Nadella to discuss the matter, the invitation was declined. Instead, Saylor will craft a concise argument to deliver to Microsoft’s leadership.

The Shareholder Proposal

The initiative, introduced by the National Center for Public Policy Research (NCPPR), seeks an assessment of whether Microsoft should invest in Bitcoin.

The proposal points to MicroStrategy’s success as a case study, noting that despite being a smaller company, MicroStrategy’s stock has outperformed Microsoft by over 300% this year, thanks to its Bitcoin investment strategy.

Microsoft’s board of directors has recommended voting against the proposal, citing that the company already evaluates a broad range of investment opportunities, including Bitcoin. Nevertheless, the issue is set for a vote on Dec. 10.

Saylor’s Case for Bitcoin

Saylor, whose company has amassed over 150,000 Bitcoin, argues that the cryptocurrency could make Microsoft’s stock more stable and less risky.

“It would be a lot more stable stock and a much less risky stock if half of the enterprise value of the stock was based upon tangible assets or property like Bitcoin,” he said.

Saylor also suggested that other cash-rich companies, including Apple, Google, and Berkshire Hathaway, should consider Bitcoin as a way to reduce the erosion of shareholder value caused by idle cash reserves.

Currently, Saylor claims that 98.5% of Microsoft’s enterprise value is tied to quarterly earnings, while just 1.5% is linked to tangible assets. He argues that Bitcoin could provide a more balanced and resilient foundation for the company’s valuation.

Tight Vote and High Stakes

If Microsoft’s shareholders approve the proposal, it would force the company to formally evaluate Bitcoin’s potential as an asset. Ethan Peck, Deputy Director of the NCPPR’s Free Enterprise Project, said this could place Microsoft in a difficult position if it concludes not to invest in the cryptocurrency.

Microsoft’s board comprises 12 members, including Satya Nadella, who also serves as chairman, alongside executives from prominent firms such as Walt Disney, Citigroup, Wells Fargo, and GSK.

The Bigger Picture

While Microsoft’s board remains skeptical, the proposal reflects a broader trend of Bitcoin’s growing influence in corporate finance. Saylor believes Bitcoin adoption should be a priority for companies with significant cash reserves, as it offers a hedge against inflation and a tangible asset to strengthen balance sheets.

The outcome of Microsoft’s vote could set a precedent for other tech giants considering similar strategies. As the Dec. 10 vote approaches, the cryptocurrency and corporate worlds will be watching closely.

Stay tuned for updates as this story unfolds.