Highlights:
- MicroStrategy’s founder will present a brief Bitcoin investment proposal to Microsoft’s board.
- He advocates for major corporations like Apple and Google to prioritize Bitcoin investments.
- MicroStrategy’s stock surged 581% this year, significantly outperforming Microsoft’s gains.
MicroStrategy’s founder and chairman, Michael Saylor, has agreed to give a brief presentation on Bitcoin investment to Microsoft’s board of directors. In a Nov. 19 X Spaces hosted by VanEck, Saylor disclosed that an activist approached him to deliver a three-minute presentation to the board, a proposal he accepted.
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Michael Saylor to present to Microsoft's board next month on adding #Bitcoin to their corporate treasury.
Shareholder activists secured him a 3-minute slot for the pitch. pic.twitter.com/nrayrMMmqF
— TFTC (@TFTC21) November 19, 2024
Saylor emphasized that major corporations like Berkshire Hathaway, Apple, Google, and Meta should prioritize Bitcoin investments. He highlighted their significant cash reserves and the potential to enhance shareholder value. Microsoft’s board, comprising notable members such as CEO and Chairman Satya Nadella, alongside executives from Citigroup, GSK, The Walt Disney Company, and Wells Fargo, will be the audience for Saylor’s presentation.
Saylor said:
“It would be a lot more stable stock and a much less risky stock if half of the enterprise value of the stock was based upon tangible assets or property like Bitcoin. So I think there’s a great argument to be made. I think shareholders should make it.”
Saylor has openly urged Microsoft to consider adding Bitcoin to its treasury. He believes adopting Bitcoin could help Microsoft generate “the next trillion dollars” for its shareholders.
Hey @SatyaNadella, if you want to make the next trillion dollars for $MSFT shareholders, call me. pic.twitter.com/NPnVvL7Wmj
— Michael Saylor⚡️ (@saylor) October 25, 2024
Microsoft Shareholders to Vote on Bitcoin Investment Proposal Next Month
In a filing with the U.S. SEC on October 24, Microsoft revealed that shareholders will vote on whether the company should add Bitcoin to its balance sheet. The proposal, titled “Assessment of Investing in Bitcoin,” has been presented to select shareholders, who will vote on it at the December 10 meeting.
Microsoft’s board initially opposed the proposal. Although some shareholders have shown interest, Microsoft’s top priority remains artificial intelligence. Major financial institutions such as Vanguard Group, BlackRock, State Street, and Fidelity Management & Research are among the top shareholders.
The National Center for Public Policy Research (NCPPR) submitted this proposal. It pointed out that MicroStrategy’s Bitcoin-focused strategy has caused its share price to outperform Microsoft’s by over 300% this year despite MicroStrategy’s smaller scale of operations.
More: In additional materials filed today, Microsoft's board explains why it recommends a vote against this proposal: Because it's "unnecessary" since "Microsoft’s management already carefully considers this topic."
Microsoft’s Global Treasury and Investment Services team… https://t.co/6d8iSvHuuB
— MacroScope (@MacroScope17) October 24, 2024
The Microsoft board is urging shareholders to oppose the proposal for two key reasons. First, they have already explored cryptocurrency and deem it unwise, deeming the proposal unnecessary. Second, they believe Bitcoin’s volatility makes it an unsuitable investment.
Microsoft noted:
“As the proposal itself notes, volatility is a factor to consider in evaluating cryptocurrency investments for corporate treasury applications that require stable and predictable investments to ensure liquidity and operational funding.”
MicroStrategy’s BTC Acquisitions Propel Stock to Record Highs
Over the past week, MicroStrategy acquired 51,780 BTC for $4.6 billion. The business intelligence firm now holds 331,200 BTC, with an average cost of $49,874 per token. Saylor mentioned that the company BTC spent around $16.5 billion over four years. According to Yahoo Finance data, MicroStrategy’s stock hit a new record high at Tuesday’s market close. It surged 581% this year, while Microsoft’s stock gained about 12% in the same period.
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