Microsoft May Soon Adopt Michael Saylor’s Bitcoin Strategy

After Microstrategy and Tesla, Microsoft may soon take the plunge by adopting Michael Saylor's Bitcoin strategy.

Bitcoin enthusiasts are eagerly awaiting the upcoming shareholders' meeting of tech behemoth Microsoft, which is set to take place in December.

The meeting will see shareholders vote on a proposal to integrate Michael Saylor’s Bitcoin strategy into the company’s financial policy.

If approved, Microsoft will follow in the footsteps of MicroStrategy and Tesla, which have already adopted a similar approach.

Those who are closely following the markets will recall that MicroStrategy became the first multinational company to adopt Bitcoin as its main cash asset in August 2020.

The goal of this move was to counter the ongoing devaluation of the dollar, which has effectively lost 20% of its purchasing power in the process.

This strategy appears to be working wonders, as evidenced by the fact that MicroStrategy’s stock is appreciating at a rate that outpaces even that of the giant NVIDIA.

To put this into perspective, the former has gained 430% since January compared to “only” 190% for the latter.

Moreover, MicroStrategy is capitalizing on the impressive performance of Bitcoin, which has soared by 120% in the same period.

This correlation can be further attributed to the presence of 331,200 bitcoins in its treasury.

In essence, its stock has become a Bitcoin derivative. Obtained at an average price of $49,874 (~$16.5 billion), these BTC are now valued at more than $30 billion.

The gap (430% > 120%) can be explained by the fact that MicroStrategy is borrowing to buy bitcoins.

In other words, investing in MSTR shares is equivalent to buying BTC with leverage without risking liquidation by volatility.

Other companies, such as Block and Tesla, are already following in MicroStrategy’s footsteps.

Semler Scientific, Solidion Technology, Thumzup Media, Genius Group, Cosmos Health, and BlockStream have recently adopted the same strategy as MicroStrategy.

While these companies may be small in terms of capitalization, a heavyweight is expected to soon join the dance: Microsoft.

Melting Ice Cube

It is worth noting that Microsoft is not entirely new to the world of Bitcoin.

The tech giant has been accepting the cryptocurrency as a payment method on the Windows and Xbox Stores since 2014.

However, the Mountain View firm has yet to make Bitcoin a cash asset on its balance sheet, but MicroStrategy’s outrageous success could change the game.

As such, the Bitcoin strategy will be on the agenda of the shareholders’ meeting in December.

An excerpt from the document published by Microsoft in preparation for the shareholders’ vote reads as follows:

"MicroStrategy – which, like Microsoft, is a technology company, but which, unlike Microsoft, holds bitcoins on its balance sheet – has seen its stock performance exceed that of Microsoft by 313% this year. And this despite the fact that it only represents a fraction of Microsoft’s activity. And they are not alone. The adoption of bitcoin by institutions and companies is becoming increasingly common. BlackRock, Microsoft’s second largest shareholder, offers its clients a Bitcoin ETF."

Shareholders have until December 10 to make their voices heard.

Let’s bet that Michael Saylor‘s speech at the AGM will tip the scales.

A positive vote could trigger an avalanche, considering that ten companies, including Apple, Google, and Microsoft, hold more than one-third of the $2.5 trillion held by the entire S&P 500 (U.S. stock market).

To provide further context, Microsoft holds $78 billion in cash, Apple $156 billion, Google $93 billion, Amazon $88 billion, etc.

All of this money is being quickly eroded by inflation.

Bitcoin for Everyone

Governments are not to be outdone in this Bitcoin accumulation game.

Small countries like El Salvador and Bhutan have been buying up bitcoins for several years now.

Not to mention those who prefer to remain discreet, especially in the Middle East, according to Mike Novogratz:

"Countries are already buying bitcoins. I have a good friend in the Middle East who has never told me that he has never seen this. […] Leaders around the world heard Donald Trump say in Nashville that he would be a “Bitcoin President.”

How could the rest of the world remain idle if the U.S. government creates a strategic reserve of bitcoins?

Even the Governor of the Bank of France has come to terms with the fact, that’s saying something…

If Senator Cynthia Lummis achieves her goals, the United States will acquire one million bitcoins.

In this scenario, the whole world will follow, including Europe. The Polish presidential candidate Sławomir Mentzen has well understood this:

"Poland should create a strategic reserve of bitcoins.