NAIROBI (CoinChapter.com)— Microsoft and Amazon shareholders are urging the tech titans to consider Bitcoin investments, inspired by MicroStrategy’s unprecedented gains from the cryptocurrency. The proposals, spearheaded by the National Center for Public Policy Research (NCPPR), aim to integrate Bitcoin into the companies’ financial strategies, citing its potential as a hedge against inflation and a tool for long-term shareholder value.
Bitcoin as the New Inflation Hedge? Shareholders Demand Action
On Dec. 10, Microsoft shareholders will vote on a proposal to assess Bitcoin as part of the company’s balance sheet. The NCPPR filed the proposal and argued that Bitcoin outperformed corporate bonds by 1,242% over the past five years and labeled it an “excellent” inflation hedge.
The group called on Microsoft to allocate at least 1% of its holdings to Bitcoin, citing a fiduciary duty to explore assets that could outperform traditional options in inflationary periods.
Amazon has also received a similar proposal, though on a larger scale. The NCPPR has asked the company to consider placing 5% of its reserves into Bitcoin. Amazon’s board has yet to issue an official recommendation, but shareholders are expected to vote at the spring annual meeting.
U.S. inflation, which hit 2.6% in Oct. and 2.4% in Sept., has intensified calls for corporate diversification strategies. Proponents argue Bitcoin’s long-term appreciation potential outweighs its volatility.
However, Microsoft’s board recommended shareholders 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, highlighting 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 surged 433.19% year-to-date, closing at $365.34, up $296.82 this year. Its massive Bitcoin holdings, totaling 423,650 BTC and valued at $42 billion, have fueled this extraordinary rally.
Michael Saylor, the firm’s executive chairman, pitched Microsoft’s board on a Bitcoin strategy that could add $5 trillion to its market value by 2034.
Saylor recently presented a plan to Microsoft’s board, suggesting the tech giant could add $5 trillion to its market value by adopting Bitcoin. However, Microsoft’s board has recommended shareholders vote against the proposal, citing the need for stability in its corporate treasury. The company’s filing noted that Bitcoin’s volatility conflicts with its long-term financial strategies.
Amazon, which reported $15.3 billion in Q3 profits, remains under pressure from shareholders to address the proposal. While the company has outperformed inflation through strong revenue growth, proponents believe Bitcoin could strengthen its financial strategy further.
As shareholder votes loom, the outcome could reshape corporate crypto adoption. While MicroStrategy’s bold strategy has yielded massive gains, Big Tech remains cautious of Bitcoin’s price swings and whether Amazon and Microsoft’s leap could define the next chapter in Bitcoin’s institutional journey.
