Fxstreet
Nov 20, 2024 1:28 PM
Michael Saylor, a leading Bitcoin advocate and Chairman of MicroStrategy, plans to give Microsoft's board of directors a three-minute overview of Bitcoin investment strategies.
On Tuesday, at an X Spaces event by VanEck, Saylor revealed that an activist who submitted a proposal to Microsoft’s board contacted him, prompting his decision to participate.
https://t.co/FFUrLNEHwh
— VanEck (@vaneck_us) November 8, 2024
Microsoft's connection to Bitcoin is in focus after Michael Saylor, a key cryptocurrency supporter, disclosed his previous proposal for a private meeting with Microsoft CEO Satya Nadella to explore potential Bitcoin investments. The proposal was declined.
Saylor’s efforts gain importance with the upcoming Microsoft shareholder vote on December 10, where investors will decide if the firm should evaluate Bitcoin as an investment option. The National Center for Public Policy Research (NCPPR) champions the initiative, highlighting MicroStrategy’s success with Bitcoin investments as a strong case study.
MicroStrategy’s stock performance this year has outpaced Microsoft’s by over 300% despite operating on a smaller scale, according to the NCPPR. This comparison has sparked debates about the tech giant exploring diversifying its asset strategy.
Saylor has criticized cash-rich corporations like Microsoft, Berkshire Hathaway, Apple, and Google for not using Bitcoin to boost shareholder value. He noted that 98.5% of Microsoft’s enterprise value is linked to quarterly earnings, while tangible assets make up only 1.5%.
Saylor argued that adding Bitcoin to the firm’s holdings could stabilize the company’s stock and reduce financial risks. He believes significant corporations missed an opportunity to adopt cryptocurrency in asset management.
Microsoft’s board has advised shareholders to reject the proposal as the board indicated that the company regularly reviews various investable assets, including Bitcoin, and finds no necessity for a specific evaluation.