MicroStrategy’sExecutiveChairmanMichaelSaylorhasdrawnattentiontoBitcoin’spotentialforcorporatebalancesheets.Healsosuggestedatrillion-dollardealtoMicrosoft,aleadingtechcompany.Moreover,thiscouldmarkthebeginningofaneweraofcorporateadoptionofBitcoin.
MicroStrategy’sSaylorProposesMajorDealtoMicrosoftCEO
SaylorbelievesMicrosoftcouldunlocksubstantialshareholdervaluebydiversifyingintoBTC.AsMicrosoftfacedaproposalforaBitcoindiversificationassessmentatitsrecentannualmeeting,SaylordirectedapublicmessagetoMicrosoftCEOSatyaNadella:
“HeySatyaNadella,ifyouwanttomakethenexttrilliondollarsfor$MSFTshareholders,callme.”
TheproposalforMicrosofttoconsideraddingBitcointoitstreasuryassets,submittedbytheNationalCenterforPublicPolicyResearch,emphasizedthevalueofassetsthatappreciateamidinflationarypressures.Thestatementargued,“Corporationshaveafiduciarydutytomaximizeshareholdervaluenotonlybyworkingtoincreaseprofitsbutalsobyworkingtoprotectthoseprofitsfromdebasement.”
Hey@SatyaNadella,ifyouwanttomakethenexttrilliondollarsfor$MSFTshareholders,callme.pic.twitter.com/NPnVvL7Wmj
—MichaelSaylor⚡️(@saylor)October25,2024
TheshareholdergroupunderscoredthatBitcoinoutperformedtraditionalcorporatebondssignificantlyoverrecentyears,delivering414%growthoverthepastfiveyears.TheproposalalsohighlightedthatMicroStrategysawitsstockoutperformMicrosoft’sbyastriking313%thisyear,despitebeingamuchsmallerentity.
Inaddition,MatthewSigel,VanEck’sHeadofDigitalAssetsResearch,alsohighlightedMicrosoft’sevaluationofBitcoinandothercryptocurrenciesfortheirtreasurypotential.InarecentpostonX(formerlyTwitter),heexplained,“MSFThas&‘willcontinuetomonitortrends&developmentsrelatedtocryptocurrenciestoinformfuturedecision-making.’”
MSFTSaysCompanyAlreadyConsiders#BitcoinasPossibleTreasuryAsset,MakingtheShareholderProposalRedundant.
MSFTHas&“WillContinuetoMonitorTrends&DevelopmentsRelatedtoCryptocurrenciestoInformFutureDecision-Making”https://t.co/9VLGN1YCBXpic.twitter.com/b4LuejpR46
—matthewsigel,recoveringCFA(@matthew_sigel)October25,2024
Microsoft’sShareholderstoVoteonBitcoinProposal
Microsoft’sboardhasrecommendedavoteagainsttheproposal,statingthatitsGlobalTreasuryandInvestmentServicesteamalreadyevaluatesdiverseassets,includingcryptocurrencies,toensurebothdiversificationandinflationprotectionforthecompany.AccordingtoMicrosoft’sofficialresponse,theboardbelievesanassessmentfocusedspecificallyonBitcoinwouldbeunnecessary,as“Microsoft’smanagementalreadycarefullyconsidersthistopic.
Theyaddedthat“volatilityisafactortoconsiderinevaluatingcryptocurrencyinvestmentsforcorporatetreasuryapplicationsthatrequirestableandpredictableinvestments.”Nonetheless,advocatesofBitcoin’sintegrationbelieveitslong-termappreciationcouldofferuniquevalueintimesofhighinflation.
TheshareholderproposalnotedthatU.S.inflationaveraged5.03%overthelastfouryears.Thismeansthatacorporation’sassetswouldneedtoappreciatesignificantly“justtobreakeven.”Hence,itcitedBitcoin’srecentperformance,whichsawa99.7%increaseinpricefromthepreviousyear,asevidenceofitsresilienceasastoreofvalue.
WithMicroStrategy’srecentstocksurgetoa25-yearhighat$234.44,BitcoinadvocatesseetheproposalasanopportunityforMicrosofttofollowtheMSTRlead.However,Microsoft’sBoardmembershaveadvisedshareholderstodisapprovetheproposal.Inaddition,anti-cryptoVanguardownsaround9%ofthecompanystock,whichcouldinfluencethedecisionnegatively.Nevertheless,themarketawaitstheshareholders’decision.
cryptonewsz.com