Microsoft shareholders recently voted against a proposal to add Bitcoin (BTC) to its treasury during the company’s annual meeting. The proposal, put forth by the National Center for Public Policy Research (NCPPR), suggested allocating 1% of Microsoft’s treasury to Bitcoin, equivalent to around $800 million based on the company’s financials for the third quarter.
The board of directors had already recommended opposition to the proposal, stating that they had considered alternative assets, including Bitcoin, but ultimately decided against it. Despite this decision, Microsoft’s board of directors mentioned that they are still keeping an eye on trends and developments in the cryptocurrency market.
In a bid to persuade Microsoft to reconsider, MicroStrategy executive chairman Michael Saylor presented a three-minute pitch to the board of directors. Saylor emphasized that Bitcoin is a crucial component of the next wave of technological innovation and warned that failing to adopt it could put Microsoft at a disadvantage in the tech industry.
Saylor proposed that integrating Bitcoin into Microsoft’s treasury could potentially lead to a $5 trillion market cap by 2034. He suggested diverting the company’s cash flows, dividend payouts, and stock buybacks into Bitcoin. MicroStrategy’s own investment in Bitcoin, currently holding 423,650 BTC, has resulted in a significant increase in the company’s stock value, with shares rising by 443% in 2024.
Following the rejection by Microsoft shareholders, the NCPPR has turned its attention to Amazon, proposing a similar idea of allocating 5% of the company’s assets to Bitcoin. This move aims to hedge against inflation and drive up Amazon’s share prices. With Amazon holding $88 billion in cash and short-term assets, this proposal could potentially see the company investing nearly $4.5 billion in Bitcoin.
Overall, the debate around integrating Bitcoin into corporate treasuries continues, with companies like Microsoft and Amazon facing decisions on whether to embrace cryptocurrency as part of their financial strategies. The potential impact on market valuations and shareholder value remains a key consideration for these tech giants as they navigate the evolving landscape of digital assets.