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coinpedia 2024-12-03 14:18:05

Saylor’s Microsoft Bitcoin Proposal: Could It Boost Shareholder Value by $5 Trillion?

The post Saylor’s Microsoft Bitcoin Proposal: Could It Boost Shareholder Value by $5 Trillion? appeared first on Coinpedia Fintech News Michael Saylor, the head of MicroStrategy, recently presented a bold plan to Microsoft’s board : invest in Bitcoin to boost shareholder value by an astonishing $5 trillion by 2034. Despite the excitement surrounding the idea, Polymarket bettors aren’t optimistic. They’ve given it only an 11% chance of approval, suggesting that most people don’t think shareholders will support the proposal. This low prediction highlights uncertainty about mixing Bitcoin with a company known for its stability. A Radical Plan to Boost Market Value Saylor argues that investing in Bitcoin could help Microsoft protect itself from inflation and economic uncertainty. He pointed out that Bitcoin has surged by over 1,200% in the past five years. If Microsoft had invested its spare cash in Bitcoin instead of spending it on dividends and stock buybacks, Saylor believes the company’s market value could have skyrocketed. He envisions Bitcoin helping Microsoft increase its market cap from $3.2 trillion to over $8 trillion. Microsoft – Not On Board ? Saylor views Bitcoin’s limited supply and growing reputation as “digital gold” as a major financial opportunity for Microsoft. He suggests converting the company’s cash flows, dividends, and stock buybacks into Bitcoin to unlock its potential for growth. However, the Microsoft board has not embraced the idea. They’ve advised shareholders to vote against it, citing Bitcoin’s volatility and the risks it could pose to the company’s financial stability. There are also concerns about how adding such a volatile asset could complicate Microsoft’s financial strategy and hurt its reputation. The Betting Market Thinks It’s Unlikely On Polymarket, most bettors agree that Microsoft won’t approve the Bitcoin proposal. Many believe that institutional investors already have plenty of options to invest in Bitcoin, so Microsoft doesn’t need to add it to its balance sheet. One bettor even argued that Bitcoin would just complicate things for Microsoft, mixing a volatile asset with the company’s stable investment strategy. While most bettors doubt Microsoft will fully embrace Bitcoin, a few think the company might still make a small investment. With its strong cash reserves, Microsoft could experiment with Bitcoin without committing a large portion of its strategy. This approach would allow the company to explore the potential of Bitcoin without taking on too much risk. .article-inside-link { margin-left: 0 !important; border: 1px solid #0052CC4D; border-left: 0; border-right: 0; padding: 10px 0; text-align: left; } .entry ul.article-inside-link li { font-size: 14px; line-height: 21px; font-weight: 600; list-style-type: none; margin-bottom: 0; display: inline-block; } .entry ul.article-inside-link li:last-child { display: none; } Also Read : Massive Altcoin Rally: Top Tokens to Watch After 600% Gains , The Big Vote Is Coming Soon Microsoft’s shareholders will make the final decision on December 10. Their vote will determine whether the company adds Bitcoin to its balance sheet, which could have a lasting impact on how other major companies view Bitcoin as a treasury asset. If Microsoft’s board approves the proposal, analysts from QCP Capital believe it could send Bitcoin’s price soaring, possibly pushing it past the $100,000 mark before the year’s end.

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