Michael Saylor Urges Microsoft to Reconsider Capital Allocation Strategy

According to PANews, Michael Saylor, Chairman of the Board at Strategy (formerly MicroStrategy), has called on Microsoft to revise its capital allocation strategy during the 'Strategy World 2025' summit. Saylor suggested that Microsoft should cease investing in low-yield bonds and stock 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 annualized return of 53%, with a cumulative increase of over 950%. In contrast, Microsoft's stock has seen an annualized return of 6% and a cumulative rise of approximately 148% during the same period. Saylor criticized Microsoft's use of cash flow for what he termed 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 substitutable capital asset, which can serve as a modern alternative to bonds. Previously, in December 2024, Saylor had recommended that Microsoft adopt Bitcoin as a core corporate strategy. However, Microsoft shareholders voted against the Bitcoin investment proposal.