In the annual Strategy World 2025 conference, MicroStrategy Strategy founder Michael Saylor once again strongly urged the tech giant Microsoft to adjust its capital allocation strategy and boldly embrace BTC.
Saylor Promotes BTC Advantages, Challenges Traditional Strategies
Saylor sharply criticized Microsoft's current approach of using massive cash flow for stock buybacks, dividend distribution, and holding low-yield bonds. He believes these traditional strategies are inefficient and may potentially harm shareholder value and weaken corporate flexibility in the long term.
He cited data to emphasize his point, noting that BTC's average annual return over the past five years was 53%, with a total increase of over 950%, far exceeding Microsoft's stock's approximately 6% annual return and 148% total growth, and outperforming investment-grade bonds that might generate negative real returns in an inflationary environment.
Saylor used strong language, stating that investing in BTC is "10 times better than buying one's own stock", calling bonds "toxic", and warning that stock buybacks "will destroy 97% of capital in 10 years".
Saylor firmly believes that in this era of digital wave, BTC is not just a high-performing asset class, but a key "digital capital" that drives enterprise value growth while reducing risk. Note: In late 2024, Microsoft shareholders rejected a proposal about investing in BTC.
Microsoft's Considerations and Future Outlook
The background of Saylor's lobbying is that Microsoft shareholders voted against a proposal by the National Center for Public Policy Research in December 2024 to allocate part of their cash and securities to BTC. This shows that at the large enterprise level, incorporating BTC into the balance sheet still faces significant challenges, including BTC's inherent high volatility, ongoing regulatory uncertainty, and strict investment strategy limitations within many large corporations.
Further Reading: Breaking News: Microsoft Board Rejects BTC Investment - Netizens: You'll Regret This Mistake in Ten Years
This debate about "digital capital" and BTC's impact on corporate finance's future requires continued observation. However, after MicroStrategy's latest purchase, the company's total BTC holdings have reached 555,450 coins, with a total purchase cost of $38.08 billion and an average purchase price of $68,550.
