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The post<a href="https://cryptosnewss.com/analyst-predicts-dogecoin-could-reach-new-all-time-high/" rel="noopener noreferrer nofollow"> </a><a href="https://cryptosnewss.com/michael-saylor-proposes-5-trillion-bitcoin-strategy-for-microsoft/" rel="noopener noreferrer nofollow">Michael Saylor Proposes $5 Trillion Bitcoin Strategy for Microsoft</a> appeared first on<a href="https://cryptosnewss.com/" rel="noopener noreferrer nofollow"> Cryptos Newss</a>.<a href="https://cryptosnewss.com/microstrategys-bitcoin-strategy-hits-microsofts-boardroom/" rel="noopener noreferrer nofollow">MicroStrategy</a> co-founder Michael Saylor <a href="https://x.com/saylor/status/1863323760511627565" rel="noopener noreferrer nofollow">shared</a> a detailed Bitcoin adoption strategy with Microsoft&#39;s board of directors, demonstrating how the tech giant could reach up to $584 per share for its stock and create nearly $5 trillion in shareholder value by 2034 through various Bitcoin treasury strategies.Microsoft stock is up 14% year-to-date to $423.46, according to Google Finance data.Speaking at Microsoft&#39;s December 2024 shareholder meeting, Saylor&#39;s presentation outlined how Microsoft could convert its current $200 billion in capital distributions into <a href="https://cryptosnewss.com/category/bitcoin-news/" rel="noopener noreferrer nofollow">Bitcoin</a> holdings, showing potential for reducing enterprise value at risk from 95% to 59% while improving annual returns from 10.4% to 15.8%.&#34;Bitcoin is the universal, perpetual, profitable merger partner,&#34; Saylor told the board, comparing the strategy to acquiring &#34;a $100 billion company growing at 60% per year at 1x revenue.&#34;<h2 id="header-0">Universal and perpetual</h2>Saylor framed Bitcoin as a unique type of corporate acquisition target for Microsoft, presenting data that shows Bitcoin&#39;s 62% annual return rate (ARR) compared to Microsoft&#39;s 18% ARR, one that doesn&#39;t come with the typical complexities and risks of traditional mergers and acquisitions (M&amp;A).Bitcoin is an always-available acquisition target that could absorb capital while delivering superior returns compared to Microsoft&#39;s current strategy of dividends and buybacks, Saylor said.The metaphor seems mainly targeted at Microsoft&#39;s board and executive leadership, who are familiar with traditional M&amp;A dynamics but may be seeking new avenues for capital deployment at their current scale.<h2 id="header-1">Bitcoin has &#39;no counterparty risk&#39;</h2>Saylor also framed Bitcoin as uniquely resistant to traditional business and geopolitical risks. His emphasis on &#34;counterparty risk&#34; addressed a key concern for corporate treasuries: the need to depend on other entities&#39; performance, stability, or cooperation.When combined with his earlier slides showing Microsoft&#39;s current 95% value-at-risk metric, this point becomes more powerful: Saylor is essentially arguing that Microsoft&#39;s current treasury strategy leaves them exposed to all these counterparty risks while Bitcoin offers a path to reduce that exposure significantly.Saylor goes on to outline a distinction between Bitcoin as a &#34;commodity, not a company,&#34; reinforcing his argument that, unlike Microsoft&#39;s current treasury holdings, Bitcoin&#39;s value isn&#39;t dependent on any single entity&#39;s performance or stability. This plays into broader corporate treasury trends of seeking uncorrelated assets for risk management, he said.Using the <a href="https://github.com/bitcoin-model/bitcoin_model" rel="noopener noreferrer nofollow">Bitcoin24 Model</a>, an open-source simulation model for Bitcoin adoption, Saylor demonstrated how Microsoft could transform its current position—approximately $3 trillion in market value with $27 billion in net cash and $70 billion in cash flow growing at 10% annually—into a substantially larger and more robust financial foundation.In October, <a href="https://cryptosnewss.com/microsoft-shareholders-to-vote-on-bitcoin-proposal/" rel="noopener noreferrer nofollow">Microsoft</a> asked its shareholders to vote on whether it should invest in Bitcoin.&#34;Do the right thing for your customers, employees, shareholders, the country, the world, and your legacy,&#34; Saylor concluded, making a final push for what would represent one of the most significant corporate Bitcoin adoptions to date. &#34;Adopt Bitcoin.&#34;The post <a href="https://cryptosnewss.com/michael-saylor-proposes-5-trillion-bitcoin-strategy-for-microsoft/" rel="noopener noreferrer nofollow">Michael Saylor Proposes $5 Trillion Bitcoin Strategy for Microsoft</a> appeared first on <a href="https://cryptosnewss.com/" rel="noopener noreferrer nofollow">Cryptos Newss</a>.

Michael Saylor Proposes $5 Trillion Bitcoin Strategy for Microsoft

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