David Edwards
Michael Saylor advocates for Microsoft to add Bitcoin to its balance sheet, projecting a path to the “next trillion dollars” for MSFT shareholders.
In a recent post on X (formerly Twitter), Michael Saylor, co-founder and executive chairman of MicroStrategy, appealed to Microsoft (NASDAQ: MSFT) CEO Satya Nadella, suggesting Bitcoin as a strategic asset to drive Microsoft’s next significant growth phase. Saylor’s post included a proposal from the National Center for Public Policy Research (NCPPR) urging Microsoft shareholders to vote on incorporating Bitcoin into the company’s balance sheet.
The NCPPR’s proposal underscores the outsized performance of MicroStrategy’s Bitcoin-centric strategy, which has outpaced Microsoft stock by over 300% this year despite MicroStrategy’s smaller business scope. Microsoft’s board, however, has recommended voting against the proposal, asserting it has reviewed diverse asset classes, including Bitcoin, and currently finds no need for further diversification.
At the heart of the proposal is Microsoft’s current $484 billion in total assets, largely held in U.S. government securities and corporate bonds with limited inflation-beating returns. The NCPPR advocates a 1% allocation to Bitcoin, citing its potential as an appreciating asset compared to more traditional holdings and its effectiveness as an inflation hedge. While acknowledging Bitcoin’s volatility, the proposal argues that even a minimal allocation could enhance shareholder value over time.
Additionally, NCPPR points to BlackRock, Microsoft’s second-largest shareholder, as evidence of institutional support for cryptocurrency; BlackRock recently introduced a spot Bitcoin ETF, offering mainstream exposure to Bitcoin. The think tank contends that ignoring Bitcoin entirely could lead Microsoft to miss a high-growth opportunity, recommending a cautious yet impactful strategy to diversify Microsoft’s balance sheet and strengthen shareholder returns.
