Michael Saylor calls on Microsoft to reevaluate its capital allocation strategy
AI Summary
According to PANews, Michael Saylor, the chairman of Strategy (formerly MicroStrategy), called on Microsoft to reconsider its capital allocation strategy during the 'Strategy World 2025' summit. Saylor suggested that Microsoft stop investing in low-yield bonds and share buybacks, advocating instead for Bitcoin to become a central option in the company's asset allocation.
Data indicates that over the past five years, Bitcoin has achieved an annual return of 53%, with a cumulative growth of over 950%. At the same time, Microsoft shares have shown an annual return of 6% and a cumulative growth of approximately 148% over the same period. Saylor criticized Microsoft's cash flow usage for what he called inefficient capital operations. He argued that if the $200 billion returned to shareholders over the past five years had been invested in Bitcoin, the company's value could have increased by $5 trillion.
Saylor emphasized that Bitcoin is a highly liquid and interchangeable capital asset that can serve as a modern alternative to bonds. Previously, in December 2024, Saylor recommended that Microsoft adopt Bitcoin as a core corporate strategy. However, Microsoft shareholders voted against the proposal to invest in Bitcoin.