Yesterday, Michael Saylor revealed a video of the speech he’ll give to the Microsoft board concerning Bitcoin.
https://twitter.com/saylor/standing/1863323760511627565
It is a 3-minute video presentation directed to the Board of Administrators of Microsoft, and its CEO Satya Nadella, during 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.
Nonetheless, on Tuesday, December 10, the shareholders of the corporate shall be requested to vote on the proposal to spend money on Bitcoin.
Will probably be an official vote that would affect the corporate’s coverage in the direction of BTC, however the Board of Administrators has expressed a unfavourable opinion, inviting shareholders to vote towards this proposal.
However, Microsoft has by no means proven an actual aversion in the direction of Bitcoin, a lot in order that the identical Board of Administrators requested Michael Saylor to clarify why it could be helpful for the corporate to spend money on BTC.
As of right now, nonetheless, the result of this assembly continues to be unknown, that’s, whether or not Saylor is managing to persuade the Microsoft Board of Administrators to vary their thoughts about it and to specific a bull opinion as a substitute of a bear one.
Michael Salyor, Microsoft and Bitcoin
Earlier than right now, there isn’t a information of collaborations between Michael Saylor and Microsoft.
Nonetheless, the corporate he based, MicroStrategy, not too long ago reached its peak values on the inventory market exactly because of investments in Bitcoin.
Simply suppose that in 2019, earlier than beginning to buy BTC, the worth 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 under $400, which continues to be a stage greater than 25 occasions increased than that of 2019.
In his presentation to the Microsoft board, Saylor says that Bitcoin represents the best digital transformation of the twenty first century, and that it subsequently makes good sense for the corporate to buy and maintain BTC, fairly than repurchasing shares or holding bonds.
Saylor factors out that Microsoft within the final 5 years has given up lots of of billions of {dollars} in capital, amongst different issues, exactly whereas MicroStrategy was as a substitute investing in BTC inflicting a bull within the inventory market.
Microsoft on the Inventory Trade (MSFT)
It shouldn’t be forgotten, nonetheless, that Microsoft additionally recorded its all-time highs on the inventory market this yr.
The best value ever reached on the inventory market by Microsoft shares is the 468$ touched in the beginning of July, whereas now it has barely decreased to 430$.
In 2019, earlier than the pandemic, the worth fluctuated between $100 and $150, subsequently within the meantime it has elevated by about 3 and a half occasions.
This efficiency of MSFT shares is totally noteworthy, but it surely pales compared to that of MicroStrategy shares.
It’s price noting, nonetheless, 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 near $300 once more.
Microsoft, then again, throughout these years had gone from virtually $60 to about $30, that means with a loss that was enormously decrease. Moreover, already in 2016, it had managed to get again above $60.
The 2 conditions subsequently don’t appear comparable.
Bitcoin (BTC): probably the most resilient asset
In accordance with Michael Saylor, Microsoft can’t afford to overlook the subsequent technological wave, particularly Bitcoin, which represents digital capital.
The founding father of MicroStrategy states that, in the long run, dangers akin to taxes, politics, recession, regulation, conflict, and climate situations may destroy over 10 trillion {dollars} a yr in capital.
The answer, in accordance with him, could be Bitcoin, the digital capital, which might serve to keep away from these dangers.
Saylor defines Bitcoin as “an asset with out counterparty danger,” and certainly that is appropriate if the BTC are correctly saved on non-custodial wallets.
Nonetheless, there’s a danger, and it is because of 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 worth 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.
Simply contemplate 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 influence that even minimal investments from many corporations just like Microsoft may have on the worth of BTC may very well be vital.