Saylor to Big Tech: Go Big on Crypto or Get Left Behind

MicroStrategy’s Michael Saylor just threw down the gauntlet—tech giants ignoring Bitcoin are ’digitally illiterate’ in the new financial paradigm.

The Oracle of Orange? Saylor’s latest provocation cuts through the usual corporate hedging—no ’blockchain, not crypto’ dodges this time.

Wall Street snark: Maybe they’re too busy buying back shares at ATHs to notice the trillion-dollar asset class eating their lunch.

Microsoft and Bitcoin

Saylor highlighted that while Microsoft shares have generated an average annual return of 18% over the past five years, Bitcoin$97,041 has delivered an impressive 62% annual return in the same period. He stressed that when capital costs are calculated against the S&P 500 rate, Bitcoin’s performance significantly surpasses traditional investments.

Michael Saylor: “Microsoft is going to buy back shares, but buying Bitcoin is about ten times more advantageous than buying back its own stock.”

Advantages of Cryptocurrency Capital

Saylor views Bitcoin not only as a higher-yielding asset but also as a fundamentally different kind of digital capital. He pointed out its advantages over traditional physical assets, citing its invisible, untouchable, and permanent structure as beneficial. Using the analogy of a digital building, he highlighted Bitcoin’s endurance and resilience.

Michael Saylor: “Issues like leasing, weather conditions, or local interventions encountered in physical buildings do not apply to Bitcoin.”

Furthermore, Bitcoin offers a feature of being uncorrelated with other assets in a portfolio. This attribute can enhance a company’s balance sheet and is positively viewed from a risk diversification perspective. Companies should consider exploring alternative strategies for directing cash reserves into varied assets.

Saylor advocated for companies like Microsoft, which operate on digital infrastructure, to incorporate elements like Bitcoin into their cash evaluations.

He noted that digital assets are independent of competition, regional restrictions, and other risk factors. Evaluating such alternative investment vehicles alongside traditional capital structures might provide companies with long-term advantages.