Microsoft Shareholders Oppose Bitcoin Treasury Allocation

By: Eliza Bennet

Microsoft recently held its annual shareholder meeting, where a significant proposal was up for discussion. The proposal, introduced by the National Center for Public Policy Research (NCPPR), suggested that Microsoft allocate 1% of its treasury, which amounts to approximately $800 million, into Bitcoin (BTC). However, the shareholders expressed their disapproval in a preliminary vote, aligning with the board of directors' earlier recommendation to oppose the initiative.

The board had argued against the proposal in late October, emphasizing that it had already considered alternative assets, including Bitcoin and other cryptocurrencies. Despite this, the board continues to monitor trends and developments in the digital asset market. Michael Saylor from MicroStrategy, a firm well-known for its substantial Bitcoin holdings, presented arguments supporting the addition of Bitcoin to Microsoft's treasury, suggesting it could significantly boost the company's market cap.

Saylor posited that integrating Bitcoin as a treasury asset could propel Microsoft into stronger financial positions, projecting a market cap of $5 trillion by 2034. He advocated for reallocating the firm's cash flows, dividends, and stock buybacks toward Bitcoin investments. Despite his arguments, the proposal faced substantial pushback from Microsoft shareholders. Interestingly, this is not a unique case, as the NCPPR has also introduced a similar proposal to Amazon, suggesting a 5% allocation of its assets in Bitcoin.

Should Amazon's shareholders agree to pursue this strategy, the company would allocate a staggering $4.5 billion in Bitcoin, based on its current $88 billion reserves in cash and short-term assets. This move is seen as an effort by the NCPPR to address inflation concerns and increase share prices. In the case of MicroStrategy, which already holds a significant Bitcoin position, the decision has resulted in a remarkable increase in the company's stock value, reaching new all-time highs recently.