Will Microsoft Take The Leap of Bitcoin? 🤸♀️
Tech giant's shareholders want the Board to consider buying Bitcoin. Saylor wants to help Microsoft make trillions of dollars. Metaplanet adopts BTC Yield. MicroStrategy share hits record high.
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The biggest corporate Bitcoin champion wants to be on Microsoft CEO’s speed dial.
MicroStrategy CEO Michael Saylor to Microsoft CEO Satya Nadella
"Hey @SatyaNadella, if you want to make the next trillion dollars for $MSFT shareholders, call me."
What’s happening?
When the going gets tough, the tough get going.
Tough who - You? Me? Nah. Bitcoin.
Says who? Microsoft shareholders.
The tech giant’s shareholders proposed an “Assessment of Investing in Bitcoin” as an item on the voting ballot ahead of its 2024 annual shareholder meeting in early December.
They feel Bitcoin can be the company’s saviour in inflationary times.
“Bitcoin is an excellent, if not the best, hedge against inflation and corporate bond yields are less than the true inflation rate.
Therefore, in inflationary times like these, corporations should – and perhaps have a fiduciary duty to – consider diversifying their balance sheets with assets that appreciate more than bonds, even if those assets are more volatile short-term.”
They requested the Board to consider holding “just 1% of its assets in Bitcoin”.
And guess who got an honorary mention … the largest public listed Bitcoin HODLer - MicroStrategy.
The shareholders pointed out how MicroStrategy’s stock outperformed the tech giant’s by 313%. That’s 3x growth despite doing just a fraction of the business that Microsoft did.
Which Michael Saylor duly acknowledged 🙇
But the Microsoft Board was not interested in any of it.
Why? Says the company has already evaluated the option and finds no need for the assessment.
Past evaluations have included Bitcoin and other cryptocurrencies among the options considered, and Microsoft continues to monitor trends and developments related to cryptocurrencies to inform future decision making.
Microsoft has strong and appropriate processes in place to manage and diversify its corporate treasury for the long-term benefit of shareholders and this requested public assessment is unwarranted.
So, no Bitcoin for Microsoft?
Maybe. Maybe just for now.
But, Microsoft doesn’t need to look far for motivation.
The answer lies within.
Microsoft’ second largest shareholder - Blackrock - offers a Bitcoin ETF.
And there’s also help from the outside.
MicroStrategy’s Michael Saylor wants to help.
Will Satya Nadella ring up Saylor?
Or maybe Microsoft CEO just thinks of Saylor as an outsider who knows little about the tech giant.
Well, Nadella might not be interested in Saylor’s Bitcoin love story, but someone else is.
Read on …
Metaplanet Adopts Bitcoin Metric
Asia's answer to MicroStrategy isn’t just buying BTC like them - they're thinking like them too.
Meaning? Metaplanet, the latest public listed entity that is on a Bitcoin shopping spree, has taken a leaf from MicroStrategy’s playbook.
It has adopted BTC Yield, Michael Saylor’s favourite metric, to see the impact of Bitcoin for its shareholders.
MicroStrategy started doing this in August this year.
Read: Should You Invest in MicroStrategy’s Bitcoin Bet? 🍔 🤔
So, what does this metric do?
Tracks Bitcoin-to-shares ratio
Shows shareholder value changes
Updates quarterly
Measures buying efficiency
And these numbers have been promising for Metaplanet.
July-Sept: 41.7% BTC Yield
Oct 1-Oct 24: 116% BTC Yield
Meaning: Total BTC holdings nearly tripled compared to its previous quarter’s purchases!
Metaplanet warns this isn't about profitability or liquidity. It's about transparency.
So, how much BTC has Metaplanet added to its kitty so far? Stay with us …
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In The Numbers 🔢
$68.89 million
Bitcoin worth in Metaplanet's treasury after their latest shopping spree on Monday morning, October 28, 2024.
Starting the week with a bang? Absolutely.
Total BTC holdings: 1,018 BTC
Latest purchase: 156.78 BTC
Where does that leave Metaplanet alongside other corporates buying BTC?
It’s at number 19. With a Bitcoin holding accounting for half of its market cap.
So, what makes Metaplanet standout?
Selling put options for extra yield
Strategic "bottom-fishing"
Positioning for price dips
How do we know its strategy is working?
Its share price jumped more than 300% in the last six months since it bought its first BTC.
Meaning, Metaplanet's gone from zero to ~$70 million worth Bitcoin in just six months.
Another MicroStrategy in the making?
MicroStrategy's Bitcoin Bet Paying Off? 🎰
So a wary Microsoft and an ardent follower in Metaplanet.
What does that say about MicroStrategy’s Bitcoin strategy?
Just got lucky or a calculated gamble?
Not sure about that. But, the numbers are surely screaming!
Stock just hit a 25-year high
Current price: north of $230
Up from $118 in September
Nearly doubled in six weeks
While BTC only rose 20%
Now they want to become a "Bitcoin bank"
Read: Saylor's Trillion-Dollar Dream 💰
252,220 BTC holdings
Worth $17 billion
Over 1% of all Bitcoin supply
Trading at 2.7x premium to NAV
Bernstein's loving it
Rates MSTR "Outperform"
Price target: $290
Calls it "leveraged Bitcoin exposure"
Praises their debt-equity strategy
And this is what Saylor's got to say
"If we didn't exist, then billions and billions of dollars of capital from the traditional finance markets wouldn't be invested in Bitcoin."
So, is everyone now on board MSTR’s Bitcoin bet?
Not everyone's convinced. Bitcoin skeptic Peter Schiff warns of a "real bloodbath" ahead.
But with 426% returns in a year, it’s maybe advantage MicroStrategy?
The Surfer 🏄
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Great explanation, thank you!! ♥️☀️☮️🌈🏁
Metaplanet’s use of the BTC Yield metric is genius. Traditional financial metrics aren’t always relevant for Bitcoin-heavy firms, and BTC Yield offers a more transparent way to track shareholder impact. It would be interesting to see if other companies adopt this approach to draw in crypto-minded investors.