tl;dr
Big corporations, including Microsoft and Amazon, faced proposals to invest in BTC as a hedge against inflation, but these were largely rejected. The National Center for Public Policy Research drove these initiatives, aiming to prompt discussion on BTC's role in corporate treasuries. Meanwhile, Gold...
BIG CORPORATIONS APPEAR HESITANT TO INVEST IN BTC BIG CORPORATIONS APPEAR HESITANT TO INVEST IN BTC
Last week, Microsoft (NASDAQ: MSFT) had a BTC-focused proposal for discussion at its shareholder meeting. The proposal, championed by the National Center for Public Policy Research (NCPPRR)—a conservative think tank advocating for free-market solutions—urged Microsoft to allocate a portion of its profits to BTC as a hedge against inflation.
To strengthen their case, the NCPPR collaborated with MicroStrategy (NASDAQ: MSTR) Chairman Michael Saylor, a vocal BTC advocate. Saylor delivered a presentation to Microsoft’s board, emphasizing BTC’s potential to deliver higher returns than stock buybacks or bonds.
Despite Saylor’s efforts, the proposal was overwhelmingly rejected, with 99.45% of shareholders voting against it. According to one user on X.com, this means only about seven shareholders supported the idea. While the proposal failed, it put the spotlight on the ongoing conversation about BTC’s role in corporate treasuries.
The NCPPR didn’t stop at Microsoft; they also urged Amazon (NASDAQ: AMZN) shareholders to consider a similar proposal. The proposal argued that Amazon has a fiduciary duty to protect shareholder value by diversifying into assets like BTC, especially during inflationary periods. The proposal will reportedly be discussed during Amazon’s April 2025 shareholder meeting.
The NCPPR’s efforts to push BTC proposals at major corporations like Microsoft and Amazon may seem straightforward. However, in my opinion, they are more of a political/PR chess move, putting corporations in a difficult position. Even if these corporations know that the BTC proposal will ultimately be shot down, they still need to seriously discuss it with their shareholders to uphold their fiduciary duties.
At the Reuters Next Conference in New York, Goldman Sachs (NASDAQ: GS) CEO David Solomon addressed the bank’s position on digital currencies. Solomon acknowledged the possibility of regulatory changes under the Trump administration, noting that while a pro-crypto stance is clear, the specifics of regulatory evolution remain uncertain.
When it comes to Goldman Sachs, the company’s openness to dealing with digital currencies reflects the industry’s potential, but its inability to participate underscores the divide in how major players approach digital assets, especially from a legal standpoint.
While BTC and other digital currencies are gaining attention, they are still speculative assets, preventing some of the most important players from playing a role in the digital currency industry. The hesitancy of corporations to invest directly in digital currencies also reflects broader challenges.
Concrete steps to elevate digital currencies as legitimate contenders on the global financial stage will be essential if the industry hopes to win over the major corporates. But for now, the battle for digital currency’s acceptance in boardrooms continues. Whether through shareholder proposals, regulatory shifts, or evolving market conditions, the coming months will be critical in shaping how major players approach cryptocurrencies.