Bitcoin in the Boardroom – Tech Titans Embracing the Money of the Future

On December 10th, 2024 at 17:30 CET, Microsoft shareholders voted on a bitcoin investment proposal. Amazon shareholders request that the Board conduct an assessment to determine if adding bitcoin to the Company's treasury is in the best long-term interests of shareholders.

Saylor's 3-Minute Ultimatum: Bitcoin or Bust for Microsoft's Trillion-Dollar Future

On December 1st, Michael Saylor had 3 minutes to pitch the Microsoft Board on bitcoin. He said, "Microsoft can't afford to miss the next technology wave," "You have a choice to make: cling to the past, or embrace the future," and "You can create trillions of dollars of enterprise value." He flipped through 44 PowerPoint slides to make his point.

Additionally, Saylor noted that public and political support for bitcoin is surging, alongside support for a bitcoin Strategic Reserve, adding, "support for bitcoin in Wall Street is also surging." As bitcoin flirts with the $100,000 mark, after clocking in a 120% price increase YTD, MicroStrategy's market cap soared to $89 billion making it eligible for inclusion in the highly prestigious Nasdaq-100 index. The Company's stock has soared more than 460% YTD.

Microsoft is currently the third most valuable company in the world with its almost $3.2 trillion market cap, behind Apple Inc. and Nvidia Corp, which makes Saylor's criticism of the company's spending over the past five years quite noteworthy. Saylor mentioned during his short pitch that Microsoft has spent $200 billion in dividends and stock buybacks over the past five years, and that they would have performed far better putting it into bitcoin instead.

Nevertheless, Microsoft shareholders decided against the investment proposal. It will be interesting to see at what price Microsoft finally decides to invest, many speculating the price will reach $1 million before they pull the trigger.

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Amazon's Bitcoin Bet: A $4.4 Billion Proposal to Shield Shareholder Value

The same think tank that urged Microsoft to consider the bitcoin proposal, The National Center for Public Policy, has also urged Amazon to do the same.

"Corporations that invest their assets wisely – and often do – increase shareholder value more than profitable businesses that don't. Therefore, during inflationary times, corporations have a fiduciary duty to maximize shareholder value not only by working to increase profits but also by working to protect those profits from debasement", the proposal submitted to Amazon reads.

"Amazon has $88 billion of cash reserves, cash equivalents, and marketable securities, including US government bonds, foreign government bonds, and corporate bonds. Since cash is consistently being debased and bond yields are lower than the true inflation rate, which some studies show is higher than 9.1%, Amazon is not adequately protecting billions of dollars of shareholder value simply by holding these assets".

The National Center for Public Policy Research's proposal to invest 5% of Amazon's $88 billion cash reserves into bitcoin will be considered at the company's shareholder meeting in April 2025. This move reflects a broader trend among tech giants to explore bitcoin as a viable asset for their treasuries, especially in response to economic uncertainties.

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