Yesterday, Michael Saylor printed a video of the speech he will give to the Microsoft board relating to Bitcoin.
https://twitter.com/saylor/standing/1863323760511627565
This is a 3-minute video presentation directed to the Board of Directors of Microsoft, and its CEO Satya Nadella, by which Saylor explains why the corporate ought to undertake Bitcoin.
Microsoft and Bitcoin: Michael Saylor insists
At this second, there don’t appear to be any direct and vital relationships between Microsoft and Bitcoin.
However, on Tuesday, December 10, the shareholders of the corporate will be requested to vote on the proposal to put money into Bitcoin.
It will be an official vote that would affect the corporate’s coverage in the direction of BTC, however the Board of Directors has expressed a damaging opinion, inviting shareholders to vote in opposition to this proposal.
On the opposite hand, Microsoft has by no means proven an actual aversion in the direction of Bitcoin, a lot in order that the identical Board of Directors requested Michael Saylor to clarify why it may be helpful for the corporate to put money into BTC.
As of at the moment, nevertheless, the result of this assembly is nonetheless unknown, that is, whether or not Saylor is managing to persuade the Microsoft Board of Directors to change their thoughts about it and to specific a bull opinion as an alternative of a bear one.
Michael Salyor, Microsoft and Bitcoin
Before at the moment, there is no information of collaborations between Michael Saylor and Microsoft.
However, the corporate he based, MicroStrategy, lately reached its peak values on the inventory market exactly thanks to investments in Bitcoin.
Just suppose that in 2019, earlier than beginning to buy BTC, the value of MicroStrategy shares didn’t exceed $16, whereas the all-time excessive recorded on November twenty first surpassed $540.
To inform the reality, within the following weeks it went again beneath $400, which is nonetheless a stage greater than 25 instances increased than that of 2019.
In his presentation to the Microsoft board, Saylor says that Bitcoin represents the best digital transformation of the twenty first century, and that it subsequently makes good sense for the corporate to buy and maintain BTC, moderately than repurchasing shares or holding bonds.
Saylor factors out that Microsoft within the final 5 years has given up lots of of billions of {dollars} in capital, amongst different issues, exactly whereas MicroStrategy was as an alternative investing in BTC inflicting a bull within the inventory market.
Microsoft on the Stock Exchange (MSFT)
It shouldn’t be forgotten, nevertheless, that Microsoft additionally recorded its all-time highs on the inventory market this 12 months.
The highest value ever reached on the inventory market by Microsoft shares is the 468$ touched firstly of July, whereas now it has barely decreased to 430$.
In 2019, earlier than the pandemic, the value fluctuated between $100 and $150, subsequently within the meantime it has elevated by about 3 and a half instances.
This efficiency of MSFT shares is completely noteworthy, but it surely pales as compared to that of MicroStrategy shares.
It is price noting, nevertheless, that MicroStrategy on the inventory market had skilled an actual collapse in 2000 with the burst of the dot-com bubble, dropping from greater than $300 to lower than $30 in simply two months. Since then, it had by no means managed to even come shut to $300 once more.
Microsoft, however, throughout these years had gone from virtually $60 to about $30, which means with a loss that was enormously decrease. Furthermore, already in 2016, it had managed to get again above $60.
The two conditions subsequently don’t appear comparable.
Bitcoin (BTC): essentially the most resilient asset
According to Michael Saylor, Microsoft can’t afford to miss the following technological wave, specifically Bitcoin, which represents digital capital.
The founding father of MicroStrategy states that, in the long run, dangers similar to taxes, politics, recession, regulation, warfare, and climate circumstances may destroy over 10 trillion {dollars} a 12 months in capital.
The resolution, in accordance to him, could be Bitcoin, the digital capital, which might serve to keep away from these dangers.
Saylor defines Bitcoin as “an asset without counterparty risk,” and certainly this is appropriate if the BTC are correctly saved on non-custodial wallets.
However, there is a threat, and it is due to a non-technical however monetary counterpart, the market.
It ought to nonetheless be highlighted that, within the occasion of a optimistic vote on December 10, the value of Bitcoin may react with one other rise, as a result of Microsoft may open the doorways to dozens or lots of of different related investments.
Just think about that Microsoft alone has a market capitalization of greater than 3.2 trillion {dollars}, whereas Bitcoin has a market capitalization of lower than 1.9 trillion. The impression that even minimal investments from many corporations related to Microsoft may have on the value of BTC might be vital.
