MicroStrategy's Michael Saylor Suggests Microsoft Could Boost Market Cap with Bitcoin
MicroStrategy's executive chairman, Michael Saylor, believes Microsoft could significantly increase its market cap by incorporating Bitcoin into its financial strategy. During an interview on CNBC, Saylor outlined how the tech giant could add up to $4 trillion to its valuation and $600 to its share price by leveraging Bitcoin in key areas like cash reserves, dividends, and buybacks.
Saylor suggested that Microsoft could simply sweep its existing cash into Bitcoin, which would add $1 trillion to its market cap and $150 to the share price. He further proposed that converting dividends into Bitcoin or replacing buybacks with Bitcoin investments could each add another trillion dollars and $150 per share.
By embracing Bitcoin, Saylor believes Microsoft could transition from being "asset-poor and expectation-rich" to a more balanced position. He argued that instead of surrendering capital through buybacks, Microsoft could invest in Bitcoin, grow enterprise value, and feed the digital economy of the future.
MicroStrategy itself has been a pioneer in institutional Bitcoin adoption, with over 400,000 BTC in its treasury. Saylor described the company's ongoing strategy of issuing stock and debt to acquire more Bitcoin, capturing arbitrage gains, and leveraging the cryptocurrency's high volatility.
While acknowledging that major corporations like Microsoft might not immediately embrace Bitcoin, Saylor sees growing interest from publicly traded companies adopting the cryptocurrency as a strategic reserve. He believes that Bitcoin's unique characteristics, including its scarcity and outperformance of the S&P 500, will drive further adoption in the future.