BTC in Spotlight as MicroStrategy’s Saylor Propose $1T Deal

Bitcoin in Spotlight as MicroStrategy's Saylor Offers Microsoft CEO Trillion-Dollar Deal

MicroStrategy’s Executive Chairman Michael Saylor has drawn attention to Bitcoin’s potential for corporate balance sheets. He also suggested a trillion-dollar deal to Microsoft, a leading tech company. Moreover, this could mark the beginning of a new era of corporate adoption of Bitcoin.

MicroStrategy’s Saylor Proposes Major Deal to Microsoft CEO

Saylor believes Microsoft could unlock substantial shareholder value by diversifying into BTC. As Microsoft faced a proposal for a Bitcoin diversification assessment at its recent annual meeting, Saylor directed a public message to Microsoft CEO Satya Nadella:

“Hey Satya Nadella, if you want to make the next trillion dollars for $MSFT shareholders, call me.”

The proposal for Microsoft to consider adding Bitcoin to its treasury assets, submitted by the National Center for Public Policy Research, emphasized the value of assets that appreciate amid inflationary pressures. The statement argued, “Corporations have a fiduciary duty to maximize shareholder value not only by working to increase profits but also by working to protect those profits from debasement.”

The shareholder group underscored that Bitcoin outperformed traditional corporate bonds significantly over recent years, delivering 414% growth over the past five years. The proposal also highlighted that MicroStrategy saw its stock outperform Microsoft’s by a striking 313% this year, despite being a much smaller entity.

In addition, Matthew Sigel, VanEck’s Head of Digital Assets Research, also highlighted Microsoft’s evaluation of Bitcoin and other cryptocurrencies for their treasury potential. In a recent post on X (formerly Twitter), he explained, “MSFT has & ‘will continue to monitor trends & developments related to cryptocurrencies to inform future decision-making.’”

Microsoft’s Shareholders to Vote on Bitcoin Proposal

Microsoft’s board has recommended a vote against the proposal, stating that its Global Treasury and Investment Services team already evaluates diverse assets, including cryptocurrencies, to ensure both diversification and inflation protection for the company. According to Microsoft’s official response, the board believes an assessment focused specifically on Bitcoin would be unnecessary, as “Microsoft’s management already carefully considers this topic.

They added that “volatility is a factor to consider in evaluating cryptocurrency investments for corporate treasury applications that require stable and predictable investments.” Nonetheless, advocates of Bitcoin’s integration believe its long-term appreciation could offer unique value in times of high inflation.

The shareholder proposal noted that U.S. inflation averaged 5.03% over the last four years. This means that a corporation’s assets would need to appreciate significantly “just to break even.” Hence, it cited Bitcoin’s recent performance, which saw a 99.7% increase in price from the previous year, as evidence of its resilience as a store of value.

With MicroStrategy’s recent stock surge to a 25-year high at $234.44, Bitcoin advocates see the proposal as an opportunity for Microsoft to follow the MSTR lead. However, Microsoft’s Board members have advised shareholders to disapprove the proposal. In addition, anti-crypto Vanguard owns around 9% of the company stock, which could influence the decision negatively. Nevertheless, the market awaits the shareholders’ decision.

Also Read: Will Bitcoin Reach $100K Mark? Only 9.5% of Bidders in Favor

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Kritika Mehta
Written by Kritika Mehta

Kritika boasts over two years of experience in financial news and is currently a crypto journalist at CryptoNewsZ. She excels in covering blockchain technology and cryptocurrencies, offering insightful analysis and a strong grasp of market trends. With a focus on reporting the latest news, she delivers a nuanced perspective, exploring the intersection of finance, technology, and emerging crypto trends. Her ability to break down complex topics makes her work accessible to both seasoned investors and newcomers. Passionate about the transformative power of blockchain, she continually researches industry developments to provide readers with accurate, engaging, and well-researched content. She also closely monitors regulatory changes, helping readers understand their impact on the crypto market.