Michael Saylor To Present Bitcoin Treasury Strategy To Microsoft Board

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As a seasoned crypto investor with over a decade of experience under my belt, I’ve seen the evolution of Bitcoin from an obscure digital currency to a mainstream asset class. Michael Saylor’s relentless pursuit of corporate adoption for Bitcoin is nothing short of inspiring.

Michael Saylor, the Executive Chairman of MicroStrategy, plans to discuss a Bitcoin investment strategy with Microsoft’s Board of Directors prior to December 10th. This information was shared during an event organized by the investment management firm VanEck, which included Saylor, Matthew Sigel (the Head of Digital Assets Research at VanEck), Jan van Eck (CEO of VanEck), and US Senator Cynthia Lummis.

Can Saylor Convince Microsoft Of Bitcoin?

Matthew Sigel brought attention to an impending shareholder vote at Microsoft Corporation (NASDAQ: MSFT), which, if passed, would prompt the board to consider Bitcoin as a potential treasury investment. He inquired of Saylor whether such shareholder proposals could successfully foster Bitcoin’s use as a reserve currency or if there were alternative strategies to accelerate broader acceptance.

Saylor responded by endorsing shareholder activism as a legitimate approach. He revealed that the activists behind the proposal had contacted him to present to the board. “I agreed to provide a three-minute presentation—that’s all you’re allowed,” he said. Saylor intends to post this presentation online and deliver it to the board of directors.

Additionally, he revealed that he extended an invitation for a private meeting with Microsoft’s CEO, Satya Nadella, to talk about Bitcoin integration. Regrettably, this proposal was declined, leading Saylor to deliver a formal proposal instead to the board.

Saylor proposed a private meeting with Satya Nadella, offering to fly out to him and discuss a three-minute proposal in confidence at his office for an hour. However, this suggestion was not accepted. As a result, Saylor mentioned that he would prepare and submit this proposal to Microsoft’s board.

Microsoft has set its yearly shareholders gathering for December 10th, during which they’ll discuss the matter of “Evaluating an Investment in Bitcoin.” In a document submitted to the United States Securities and Exchange Commission (SEC) on October 24th, this topic was listed among the items for voting consideration.

Although the proposal is included, Microsoft’s Board of Directors advises shareholders to reject it. In documents submitted to the SEC on October 25, the board mentioned that the evaluation being requested is redundant since Microsoft’s management has Bitcoin incorporated into their wider investment approach already.

The filing mentioned that Microsoft’s International Finance and Financial Resources Department reviews various financial assets for investment purposes, which will be used to finance daily business activities. These investments are intended to offer a diverse portfolio and protect against inflation.

During the X Space, Saylor championed the idea for more corporations to incorporate Bitcoin into their treasury holdings, not just Microsoft but numerous other large companies with significant cash reserves. He proposed that such discussions should be considered by companies like Berkshire Hathaway, Apple, Google, and Meta. “They all possess enormous cash reserves,” he stated. “They’re all wasting shareholder value.

In simpler terms, Saylor stated that by incorporating Bitcoin as part of Microsoft’s tangible assets, the company’s stock could become more secure and less volatile. Essentially, he suggested that instead of being mainly dependent on quarterly earnings (which accounts for 98.5% of its enterprise value), a larger portion (half) of Microsoft’s stock value should be based on tangible assets like Bitcoin, making it a more stable investment overall.

At press time, BTC traded at $92,666.

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2024-11-20 10:29