In late 10 months, a shareholder proposal suggesting that Microsoft invest 1% of its total assets in BTC sparked market discussion. Although Microsoft initially recommended that shareholders vote against it, citing high volatility, BTC has since surged to nearly $24,000, now standing at $92,000, riding on the tailwinds of Trump's election.
The outside world is closely watching whether the Microsoft shareholder meeting on December 10 will pass this proposal, and whether the world's third-largest company by market cap will ultimately include BTC on its balance sheet under shareholder pressure.
Michael Saylor Will Pitch Bitcoin Investment Strategy to Microsoft Board
According to Cointelegraph, during the X Spaces hosted by asset management firm VanEck today (20th), Michael Saylor, the founder of MicroStrategy, the US-listed company with the most BTC, whose stock price has nearly doubled in the past month, said he would deliver a 3-minute "pitch" to the Microsoft board, explaining why Microsoft should buy BTC, and claiming that this would make Microsoft a more stable and lower-risk stock.
Saylor pointed out that he had previously proposed a private meeting with Microsoft CEO Satya Nadella to discuss the topic, but the proposal was not accepted. "So you'll see me put together a 3-minute proposal for Microsoft [...] and then we'll send it to the board," he continued:
"I think it's not a bad idea to put BTC investment on the agenda of every company. It should be on the agenda of Berkshire Hathaway, Apple, Google and Meta, because these companies have a lot of cash and they are burning shareholder value."
He believes that 98.5% of Microsoft's enterprise value is leveraged through its quarterly earnings, while only 1.5% of its stock value comes from its tangible assets.
"If half of the enterprise value of the stock is based on tangible assets or properties like BTC, then it would be a more stable and lower-risk stock. So I think there's a good argument. I think shareholders should do this."
Microsoft to Assess Bitcoin Investment at December Shareholder Meeting
Whether the Microsoft shareholder meeting will pass this proposal remains to be seen on December 10. The proposal was initiated by the conservative think tank National Center for Public Policy Research (NCPPR), which suggested in the proposal that Microsoft should study investing in BTC to hedge against inflation and other macroeconomic impacts, arguing that BTC "is at least the best hedge against inflation, if not the best"and that the company should invest at least 1% of its total assets in BTC.
NCPPR also highlighted MicroStrategy's BTC investment strategy, pointing out that it only accounts for a small portion of Microsoft's business, but its stock price has risen more than 300% this year. In addition, through BTC spot ETFs, institutional and corporate adoption of BTC is becoming increasingly common.
However, the Microsoft board recommended that shareholders vote against it, citing "volatility" as a factor to be considered in assessing the impact of crypto asset investments on the company's finances, and that the company needs stable and predictable investments to ensure liquidity and working capital.
Past assessments have included BTC and other cryptocurrencies, and Microsoft will continue to monitor trends and developments related to cryptocurrencies to inform future decisions.
The Microsoft board currently consists of 12 members, including CEO Nadella, who also serves as chairman, as well as senior executives from Disney, Citigroup, Wells Fargo and GlaxoSmithKline.
Ethan Peck, deputy director of NCPPR's Free Enterprise Project, previously warned that if Microsoft does not invest in BTC and its price subsequently rises, shareholders may have grounds to sue the company.
Further Reading:Microsoft Shareholders Ultimatum: Invest in BTC or Face Lawsuits If It Rises!
Michael Saylor：Bitcoin Will Bring a Capital Revolution
MicroStrategy, which is about to pitch its BTC investment strategy to Microsoft, has continued to accumulate BTC in recent times, announcing on Monday that it has invested $460 million to purchase 51,780 BTC at an average price of $88,627, bringing its BTC holdings to 331,200 BTC, with a total value of $30.467 billion and a total cost of $16.518 billion, resulting in an unrealized gain of approximately $13.95 billion.
Why does MicroStrategy continue to increase its Bitcoin holdings? In a recent interview with Bonnie Blockchain, a Taiwanese Web3 YouTuber, Michael Saylor stated that he believes the value of Bitcoin lies not only in it being a digital currency, but also in its ability to optimize capital structure, disrupt the traditional financial system, and help underdog companies compete against tech giants.Bitcoin is not just a currency tool, but a tool that can optimize capital structure. If companies can incorporate Bitcoin into their balance sheets, it will greatly increase their attractiveness in the stock market and drive the flow and growth of capital.
Bitcoin is a digital energy source. Before people realized that fire and electricity were good things, they were afraid of them. Similarly, people were initially skeptical about Bitcoin, but over time they have come to see it as a force that will drive economic and technological progress.
