Bitcoin News: Saylor Urges Microsoft to Ditch Bonds, Buy Bitcoin

• The Bitcoin news market galored as Saylor urges Microsoft to replace bond purchases and stock buybacks with Bitcoin.
• Bitcoin averaged 53% annual returns (950% total) over five years versus Microsoft’s 6% annual (148% total).
• He labels bonds “toxic” and warns buybacks can destroy 97% of capital over a decade.
• Microsoft’s $200 billion in shareholder returns could have created up to $5 trillion of value if invested in Bitcoin.

In the fast-evolving world of corporate finance, few ideas have sparked as much debate as Michael Saylor’s bold suggestion to Microsoft: swap its conservative bond investments for Bitcoin.

As the CEO of MicroStrategy and a vocal Bitcoin advocate, Saylor believes this move could transform Microsoft’s financial future.

“Microsoft should be powered by digital capital,” Saylor declared, framing Bitcoin as the “highest‑performing uncorrelated asset.”

He challenged the prevailing corporate playbook of low‑yield bonds and stock repurchases, arguing these legacy strategies leave equity weaker and shareholders exposed to volatility.

Instead, Bitcoin’s fixed supply and independent monetary policy provide a modern hedge against inflation and market downturns.

Bitcoin News: Saylor’s Case for Microsoft: Bitcoin Over Bonds

During Strategy World 2025, Saylor’s argument centers on Bitcoin’s historical performance. According to TradingView data, Bitcoin delivered a five‑year average annual return of 53%, dwarfing Microsoft’s 6% average (148% total) return over the same stretch.

Analysis put these figures even higher: 62% annual gains for Bitcoin versus 18% for Microsoft—and bonds lost 5% yearly, underperforming by 19%. Such stark contrasts make a compelling case for reallocating corporate reserves.

Saylor calls Bitcoin “digital capital”—a revolutionary asset that could redefine how companies manage their treasuries.

On the other hand, Saylor in January labeled bonds “toxic,” citing their negative real yields and potential to destroy capital over time. This was indeed a good news for Bitcoin and the larger ecosystem.

He said that corporate reliance on low‑yield sovereign debt fails to keep pace with inflation and market returns, turning bonds into a drag on balance sheets. For companies with vast cash hoards, parking funds in U.S. Treasuries or corporate debt can erode value.

Saylor has put his money where his mouth is.MicroStrategy added 1,895 BTC last week, bringing its total to 555,450 BTC, acquired for over $38 billion in cash at an average price of $68,550.

The latest purchase was executed at an average price of $95,167, highlighting continued confidence in Bitcoin’s long‑term prospects.

MicroStrategy’s market capitalization has exploded from roughly $1.2 billion in August 2020 to over $105 billion in May 2025—a rally of more than 8,650%. The company’s aggressive Bitcoin acquisition strategy underpins this transformation.

Microsoft, sitting on$104.8 billion in cash and equivalents as of FY25, is an ideal target for Saylor’s vision.

He claims that redirecting the $200 billion returned to shareholders over five years into Bitcoin could increase Microsoft’s enterprise value by as much as $5 trillion.

Yet, Microsoft’s board remains skeptical. In December 2024, a shareholder proposal to invest just 1% of its cash in Bitcoin was rejected, receiving flat support.

The board, supported by proxy advisors, emphasized Bitcoin’s volatility and Microsoft’s preference for a cautious investment approach.

The Risks: Volatility and Regulation

Bitcoin’s potential is matched by its pitfalls. Its price is notoriously unstable reaching $108,000 earlier this year, but with a history of sharp drops. These have added some pessimism to Bitcoin news cycles.

Regulatory uncertainty adds another layer of complexity, as governments worldwide wrestle with cryptocurrency oversight. Microsoft has flirted with crypto, accepting Bitcoin for payments since 2014, but its treasury remains rooted in traditional assets.

With$104.8 billion in cash, the company has flexibility, yet its leadership prioritizes stability over speculative ventures.

Saylor’s pitch at Strategy World 2025 highlights a larger question: Is Bitcoin a viable corporate asset, or is it too unpredictable for mainstream adoption? MicroStrategy’s success leans toward the former, while Microsoft’s rejection supports the latter.

For now, Microsoft is sticking to its conservative playbook. But with Bitcoin’s dominance—53-62% annual returns compared to bonds’ -5%—Saylor’s idea should be hard to ignore.

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