36 hours later, Microsoft, with $78.4 billion in hand, will decide whether to invest in BTC
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36 hours later, Microsoft, with $78.4 billion in hand, will decide whether to invest in BTC
Prediction markets are now open on Polymarket—will large-scale capital inflows be just a matter of time?
Navigating Web3 tides with focused insightsBy Azuma, Odaily Planet Daily
At 8:30 AM Pacific Time on December 10 (00:30 Beijing Time on December 11), Microsoft will proceed with a significant shareholder proposal—evaluating through shareholder voting whether including Bitcoin on its balance sheet aligns with long-term shareholder interests. As BTC hovers around $100,000, this vote is widely seen by the market as another key event this week—alongside CPI data and developments in South Korea—that could influence the trajectory of the cryptocurrency market.
The Origin of the Proposal
This shareholder proposal was initially submitted by the National Center for Public Policy Research (NCPPR), a U.S. conservative think tank.
NCPPR argued that during periods of sustained inflation, a company's success depends not only on operational performance but also on preserving the value of its profits. According to the Consumer Price Index (CPI), the average inflation rate in the United States over the past four years has been 5% (with NCPPR believing the actual figure may be higher). Therefore, companies have a fiduciary duty not just to grow profits but also to protect them from devaluation. However, because Microsoft invests most of its assets in U.S. government securities and corporate bonds, it has failed to effectively safeguard its assets against depreciation.
In the proposal, NCPPR emphasized that although Bitcoin is volatile, "Bitcoin remains an excellent, if not the best, hedge against inflation," and recommended that Microsoft evaluate allocating at least 1% of its assets to Bitcoin.
According to filings already submitted to the U.S. Securities and Exchange Commission (SEC), this proposal is expected to go to a shareholder vote on December 10 alongside several other proposals.
Will the Vote Pass?
While the crypto community holds high hopes for this vote, given current circumstances, it remains highly uncertain whether Microsoft shareholders will approve the proposal.
In documents filed with the SEC, Microsoft’s board explicitly expressed opposition to the proposal, stating that management previously evaluated the matter and concluded that corporate funds require stable and predictable investments to ensure liquidity and operational funding.
Despite clear resistance from leadership, institutions and individuals supporting the proposal continue actively advocating for its adoption.
On one hand, BlackRock, which holds 7% of Microsoft shares, is expected to participate directly in the vote and is likely to cast a supportive ballot. Michael Saylor, co-founder of MicroStrategy, has also presented a 44-page PowerPoint deck to Microsoft CEO Satya Nadella and the board, highlighting shifts in the Bitcoin regulatory landscape, aiming to shift executive sentiment.
On the other hand, on Reddit forums known for more radical views, numerous supporters are actively urging small and mid-sized Microsoft shareholders to vote in favor.
Nonetheless, market expectations for the proposal’s passage remain low. Real-time prediction data from Polymarket shows only a 13% chance of approval.
If Approved, How Large Could the Buying Pressure Be?
Although the outcome remains uncertain, we can still estimate how much capital Microsoft might deploy toward BTC purchases should the proposal pass, based on its current reserves.
Data from Macrotrends shows that as of September 30, 2024, Microsoft held $78.428 billion in cash reserves.
This means that if the proposal passes and follows NCPPR’s recommendation to allocate at least 1% of assets, it would result in a minimum buying pressure of $784 million.
NCPPR Presses Forward—After Microsoft, Will Amazon Be Next?
This morning, NCPPR filed a similar shareholder proposal with Amazon, another tech giant, urging the company to assess adding Bitcoin to its asset reserves. This time, NCPPR recommends Amazon allocate at least 5% of its total assets to Bitcoin.
CZ commented on the development via his personal X account, asking when Amazon will start accepting Bitcoin payments.
While the SEC has not yet announced any progress on this proposal, Tim Kotzman, founder and CEO of Jubilee Royalty, said related disclosures are expected around April 2025, meaning the proposal could be reviewed at Amazon’s annual shareholder meeting next year.
From early adopters like MicroStrategy and Tesla to potential new entrants such as Microsoft and Amazon, Bitcoin’s expansion into the mainstream world appears to be accelerating. While Microsoft’s upcoming vote may very well fail, the broader trend suggests it might only be a matter of time before major corporations embrace Bitcoin on their balance sheets.
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