Could Microsoft Add $5 Trillion to Its Market Cap?

Michael Saylor, the head of MicroStrategy, recently proposed an ambitious plan to Microsoft, suggesting that the company could see its market value increase by as much as $5 trillion by making Bitcoin a central part of its investment strategy. Saylor emphasized the tremendous potential Bitcoin holds for the tech giant.

In a dynamic three-minute pitch featuring 44 slides, Saylor urged Microsoft’s leadership to embrace Bitcoin as the next technological breakthrough. He recommended that the company allocate its resources—such as cash flows, dividends, stock buybacks, and debt—towards Bitcoin, stressing that “Microsoft can’t afford to miss the next technology wave, and Bitcoin is that wave.”

Saylor estimated that adopting this strategy could add $584 per share to Microsoft’s stock price over the next decade, assuming Bitcoin’s price reaches $1.7 million by 2034. Furthermore, he predicted that a full-scale investment in Bitcoin could boost Microsoft’s total enterprise value by an impressive $4.9 trillion.

At present, Microsoft is valued at $3.18 trillion, making it the third-largest company in the world, just behind Apple and Nvidia. The cryptocurrency’s 120% surge in 2024, nearing $100,000 per Bitcoin, has strengthened Saylor’s confidence in Bitcoin’s growth trajectory.

MicroStrategy, under Saylor’s leadership, has been a major Bitcoin investor since 2020, acquiring 386,700 BTC for $21.9 billion. The company now estimates the value of its Bitcoin holdings at $37.6 billion, with its stock price rising over 465% this year.

Saylor also highlighted the increasing political and institutional backing for Bitcoin, pointing to endorsements from top Wall Street firms and positive remarks from incoming President Donald Trump. He argued that Bitcoin presents a more lucrative investment than traditional assets, stating, “It makes more sense to buy Bitcoin than to buy back your own stock or hold bonds.”

Saylor called on Microsoft to consider Bitcoin as a strategic asset, declaring, “It’s time for Microsoft to evaluate its Bitcoin options and make the right decision for the world by adopting Bitcoin.” He emphasized that this could be a pivotal moment for the company to make a world-changing move.

Saylor’s ongoing support for Bitcoin underscores his belief that it is a transformative asset with the potential to significantly impact corporate growth. While his strategy is gaining traction, it remains to be seen whether Microsoft will act on his proposals. This decision could have a profound effect on the company’s future.

Saylor’s Bitcoin vision is gaining momentum, supported by growing institutional and political backing. However, it’s unclear if Microsoft will follow. The proposal could reshape the company’s future, but only time will reveal their response.