Microsoft Shareholders Reject Proposal to Add Bitcoin to Treasury
In a recent preliminary vote during Microsoft’s annual meeting, shareholders voted against a proposal to add Bitcoin (BTC) to the company’s treasury. The proposal, introduced by the National Center for Public Policy Research (NCPPR), suggested allocating 1% of Microsoft’s treasury to BTC, which amounts to approximately $800 million based on the company’s total cash, cash equivalents, and short-term investments for the third quarter.
The board of directors had already recommended opposition to the proposal, stating that they had considered alternative assets, including Bitcoin and other cryptocurrencies. Despite the rejection of adding Bitcoin to the treasury for now, the board mentioned that they will continue to monitor trends and developments in the market.
Bitcoin for Treasuries: A Strategic Move?
Michael Saylor, the executive chairman of MicroStrategy, presented a three-minute argument to Microsoft’s board of directors, emphasizing the importance of integrating Bitcoin into the company’s treasury. Saylor believes that Bitcoin is a crucial component of the next wave of technological innovation and warned that neglecting to incorporate BTC could put Microsoft at a disadvantage in the tech industry.
Saylor proposed allocating Microsoft’s cash flows, dividend payouts, and stock buybacks to Bitcoin, suggesting that this move could potentially lead to a $5 trillion market cap for the company by 2034. With MicroStrategy currently holding a significant amount of BTC, their shares have seen a significant increase, reaching $371.98 as of press time.
Following the rejection of the proposal by Microsoft shareholders, the NCPPR introduced a similar proposal to Amazon, urging the company to consider allocating 5% of its assets to Bitcoin. The goal of this proposal is to hedge against inflation and potentially boost Amazon’s share prices. If accepted, Amazon, with $88 billion in cash and short-term assets, could allocate nearly $4.5 billion to Bitcoin.
It remains to be seen how other tech companies will respond to the growing trend of integrating Bitcoin into their treasuries. As the market continues to evolve, companies like Microsoft and Amazon will need to carefully consider the potential benefits and risks associated with incorporating cryptocurrencies into their financial strategies.