NAIROBI (CoinChapter.com) — Shareholders of Microsoft and Amazon are urging the tech giants to consider investing in Bitcoin, inspired by the unprecedented gains made by MicroStrategy from the cryptocurrency. The proposals, led by the National Center for Public Policy Research (NCPPR), aim to incorporate Bitcoin into the companies’ financial strategies, highlighting its potential as a hedge against inflation and a tool for enhancing long-term shareholder value.
Bitcoin as the New Inflation Hedge? Shareholders Demand Action
On December 10, Microsoft shareholders will vote on a proposal to evaluate Bitcoin as part of the company’s balance sheet. The NCPPR submitted the proposal, noting that Bitcoin has outperformed corporate bonds by 1,242% over the past five years and describing it as an “excellent” inflation hedge. The group has urged Microsoft to allocate at least 1% of its holdings to Bitcoin, emphasizing a fiduciary duty to explore assets that could outperform traditional options during inflationary periods.
Amazon has also received a similar proposal, albeit on a larger scale. The NCPPR has suggested that the company consider allocating 5% of its reserves to Bitcoin. While Amazon’s board has not yet issued an official recommendation, shareholders are expected to vote at the annual spring meeting.
The rise in U.S. inflation, reaching 2.6% in October and 2.4% in September, has intensified calls for corporate diversification strategies. Supporters argue that Bitcoin’s long-term appreciation potential outweighs its volatility. However, Microsoft’s board has advised shareholders to reject the proposal, citing Bitcoin’s volatility and the need for stability in its corporate treasury. Betting platform Polymarket estimates just a 13% chance of the proposal being approved by Microsoft shareholders, underscoring the skepticism surrounding the initiative.
MicroStrategy’s Bitcoin Gamble Pays Off — Will Big Tech Follow?
MicroStrategy’s Bitcoin strategy has been a game-changer. The company’s stock has surged by 433.19% year-to-date, closing at $365.34, up $296.82 this year. This extraordinary rally has been fueled by the company’s massive Bitcoin holdings, totaling 423,650 BTC and valued at $42 billion.
Michael Saylor, the firm’s executive chairman, pitched a Bitcoin strategy to Microsoft’s board that could potentially add $5 trillion to its market value by 2034. Despite this, Microsoft’s board has recommended shareholders vote against the proposal, citing the need for stability in its corporate treasury. The company’s filing highlighted that Bitcoin’s volatility conflicts with its long-term financial strategies.
Amazon, which reported $15.3 billion in Q3 profits, is facing pressure from shareholders to consider the proposal. While the company has managed to outperform inflation through strong revenue growth, proponents believe that Bitcoin could further strengthen its financial strategy.
As shareholder votes approach, the outcome could reshape corporate adoption of cryptocurrencies. While MicroStrategy’s bold strategy has yielded significant gains, Big Tech remains cautious of Bitcoin’s price fluctuations and whether Amazon and Microsoft embracing Bitcoin could mark the next chapter in Bitcoin’s institutional journey.