Microsoft and Amazon investors eye proposals for the tech titans to buy bitcoin amid MicroStrategy's huge rally
Getty Images; Alyssa Powell/BI
- Microsoft shareholders this week will decide whether the firm should consider investing in bitcoin.
- A shareholder proposal argues that bitcoin is an "excellent" inflation hedge.
- A similar proposal will be put forth at Amazon.
MicroStrategy's triple-digit gains spurred by its bitcoin buying strategy this year have caught the attention of Big Tech shareholders. Now, Microsoft and Amazon investors could decide to push the tech titans to consider investing in the token.
On December 10, Microsoft shareholders will vote on whether the tech giant should consider investing in bitcoin. According to a filing in October, investors will vote on a proposal for Microsoft to assess bitcoin as an asset to add to its balance sheet.
The National Center for Public Policy Research, a think tank behind the idea, described bitcoin as an "excellent" inflation hedge and called for the company to hold at least 1% of its holdings in the token.
"In inflationary times like these, corporations should – and perhaps have a fiduciary duty to – consider diversifying their balance sheets with assets that appreciate more than bonds, even if those assets are more volatile short-term," the proposal said.
Meanwhile, the NCPPR has pushed the same proposal for Amazon, calling for the e-commerce giant to invest at least 5% of its assets into the apex cryptocurrency.
"Over the past five years, the price of Bitcoin increased by 1,246%, outperforming corporate bonds by 1,242% on average," the think tank said, adding that Amazon has a "fiduciary duty" to add bitcoin.
The token has soared amid rising institutional and political support this year, and its recent record high above $100,000 has rewarded firms that embraced it early on.
MicroStrategy has been among the biggest beneficiaries of bitcoin's surge, rocketing 491% this year as it raked in more and more tokens.
However, the filing showed that Microsoft's board recommends investors vote "no" on the idea, stating that the firm has already considered bitcoin investing and that its corporate treasury holdings require stability, which could be impaired by bitcoin's volatility.
"Microsoft has strong and appropriate processes in place to manage and diversify its corporate treasury for the long-term benefit of shareholders and this requested public assessment is unwarranted," the filing said.
Betting site Polymarket shows bettors see a 13% chance that Microsoft's shareholders will vote in favor of the bitcoin investing assessment.
MicroStrategy CEO Michael Saylor, in a recent presentation to Microsoft's board, argued that the tech giant could add as much as $4.9 trillion to its market value, or $584 a share over the next decade, by buying bitcoin. Microsoft is the world's third-largest company, with a market capitalization of about $3.3 trillion as of Monday.