**Microsoft Should Consider Bitcoin Over Stock Buybacks, Says Michael Saylor**
In a compelling address at Strategy World 2025, Michael Saylor, a prominent figure in the cryptocurrency space, urged major tech companies like Microsoft to rethink their financial strategies. Instead of opting for stock buybacks, Saylor advocates for investing in Bitcoin, asserting that such a move would yield significantly better returns.
Saylor highlighted that while Microsoft has achieved an impressive annual return of 18% on its stock over the past five years, Bitcoin has outperformed with a staggering 62% annual increase during the same period. He pointed out that if the cost of capital is benchmarked against the S&P 500 at 14%, Microsoft’s performance is only marginally better by 4%, whereas Bitcoin surpasses it by an impressive 48%. In contrast, traditional bonds have seen a decline of 5%, marking a 19% underperformance compared to Bitcoin.
Saylor emphasized that Bitcoin represents a fundamentally different asset class, describing it as “digital capital.” He argued that everything digital tends to outperform its physical counterparts, citing examples like digital photography versus traditional film. He likened Bitcoin to an invisible, indestructible, and immortal digital building, free from the limitations and vulnerabilities associated with physical assets.
For a company like Microsoft, which has thrived on digital infrastructure, Saylor believes that embracing digital capital is essential for future growth. He noted Bitcoin’s unique position as an uncorrelated asset, suggesting that holding it on a balance sheet could provide a hedge against market volatility.
Saylor’s vision for the future is clear: companies with substantial cash reserves should explore the potential of Bitcoin as a decentralized, borderless, and censorship-resistant asset. He concluded by stating that Bitcoin offers a refuge from the risks posed by competitors, governments, and economic fluctuations, making it a compelling choice for corporate treasuries.
**FAQ**
**Why should Microsoft consider buying Bitcoin instead of doing stock buybacks?**
Michael Saylor argues that Bitcoin has significantly outperformed Microsoft stock and traditional investments, offering a unique, uncorrelated asset that can enhance corporate treasury strategies.
