Michael Saylor to Present the Case for Adding Bitcoin to Microsoft's Balance Sheet

In a recent X Spaces discussion hosted by VanEck, Saylor revealed he would have just three minutes to make his case for why the tech giant should add Bitcoin to its balance sheet.

Tech Giant Microsoft Could Add Bitcoin to Its Balance Sheet if Shareholders Vote in Favor

Prominent Bitcoin (BTC) advocate Michael Saylor will present Microsoft shareholders with a proposal to add the cryptocurrency to the tech giant's balance sheet at an upcoming meeting.

Saylor revealed the plan during a recent X Spaces discussion hosted by VanEck, where he discussed the benefits of companies investing in Bitcoin. Notably, he will have just three minutes to present his case to the board.

The proposal aligns with a shareholder motion from the National Center for Public Policy Research (NCPPR), which will be voted on in December. The motion requests that Microsoft assess the potential benefits of investing in Bitcoin, citing MicroStrategy's Bitcoin strategy as a benchmark.

However, Microsoft's board has already played the card that they keep a close eye on “a wide range of investable assets.” But does that stance hold water? Sure, Microsoft may track assets, but what’s the point if they remain perpetually on the sidelines while other companies dive in and reap the rewards?

Just look at MicroStrategy. With an aggressive Bitcoin investment strategy, the business intelligence firm has outperformed Microsoft by over 300% this year. And remember, this is a company operating with a fraction of Microsoft's resources, workforce, and market power.

The NCPPR's proposal highlights MicroStrategy's remarkable 2023 performance. Despite being a significantly smaller company, MicroStrategy's stock outperformed Microsoft's by over 300% this year, largely due to its aggressive Bitcoin strategy.

Saylor has consistently advocated for Bitcoin as a means for companies to preserve shareholder value, particularly those with substantial cash reserves. He suggests that firms like Apple, Google, Meta, and even Berkshire Hathaway consider similar strategies.

“Microsoft’s enterprise value is 98.5% leveraged to its quarterly earnings, while only 1.5% is based on tangible assets,” Saylor noted. “Adding Bitcoin could make the stock more stable and less risky, tying a portion of its value to tangible property.”

The Microsoft board, however, has recommended voting against the proposal, arguing that it already evaluates a broad spectrum of investment opportunities, including Bitcoin.

Ethan Peck, deputy director of the NCPPR's Free Enterprise Project, told Cointelegraph that a formal assessment of Bitcoin could corner Microsoft into an uncomfortable position. If the company evaluates Bitcoin but decides not to invest, it risks facing scrutiny from shareholders.

The shareholder vote is scheduled for December 10th, and its outcome could influence Microsoft's financial strategy. Currently, the board consists of 12 members, including CEO and Chairman Satya Nadella, along with executives from major corporations like The Walt Disney Company, Citigroup, Wells Fargo, and GSK.

For Saylor, the stakes extend beyond Microsoft; he aims to set a precedent for other companies with substantial cash reserves. “It’s not a bad idea to put this on the agenda for every major company,” he said.

While the proposal faces opposition from Microsoft's board, its inclusion in the December vote signifies a growing dialogue around Bitcoin's role in corporate finance. Whether Microsoft will embrace Bitcoin or remain on the sidelines could have broader implications for institutional adoption of digital assets.