On December 10, Microsoft (MSFT –0.51%) shareholders made a significant decision when they voted against a proposal to add Bitcoin (BTC 0.74%) to the company’s balance sheet. The board had recommended a “no” vote, making this outcome somewhat expected.
But let’s play with the “what if.” Had the proposal been accepted, the ripple effects likely would have been immense. A favorable shift in Microsoft’s approach could have encouraged other major corporations to embrace Bitcoin, creating a surge in Bitcoin adoption across corporate America. Such a wave of investment could have sent Bitcoin prices soaring, potentially turning many investors into crypto millionaires. So, what’s next for this cryptocurrency?
A New Era of Bitcoin Shareholder Activism
It appears Microsoft might not be the only beneficiary of Bitcoin shareholder activism. The National Center For Public Policy Research, the think tank behind the proposal at Microsoft, has already set its sights on Amazon (AMZN –0.66%) for its next initiative. Come April, Amazon shareholders will consider a similar proposal, pushing for the company to evaluate Bitcoin as a treasury asset.
With Bitcoin possibly breaking the $100,000 barrier and the optimistic sentiment from the anticipated Trump administration, other companies are likely to contemplate adding Bitcoin to their balance sheets. Should they ignore such proposals, they may face backlash from their stakeholders.
This movement signifies shareholders urging companies to invest in what they believe in, fostering a trend where Bitcoin adoption could become a new avenue for enhancing shareholder value.
Corporate America’s Approach to Bitcoin
Currently, the largest publicly traded entities holding Bitcoin are primarily those deeply entrenched in the crypto sector, like Coinbase Global (COIN –0.76%) and MicroStrategy (MSTR 4.20%). While there are exceptions, such as Tesla (TSLA 4.34%), most corporations investing in Bitcoin have a clear connection to the cryptocurrency industry, as their business models directly benefit from such assets.
Change might be on the horizon. On November 20, three biotech firms announced plans to invest $1 million each in Bitcoin, seeing it as both a strategic investment and an opportunity to increase shareholder value. If these efforts prove fruitful, other companies may soon follow their lead.
The Impact on Bitcoin Investors
What does this mean for you as a potential investor? If you’re banking on Bitcoin for your financial future, you should fervently wish for Bitcoin shareholder activism to thrive. Widespread corporate investment in Bitcoin could send prices soaring, benefiting all who hold this asset.
Consider this: during a presentation advocating for Microsoft to adopt Bitcoin, Michael Saylor, founder of MicroStrategy, suggested that Microsoft could invest up to $100 billion annually in Bitcoin for its treasury. This move could potentially add trillions to Microsoft’s market cap.
If Microsoft were to make such a colossal investment, it would outpace MicroStrategy, which currently holds about $42 billion in Bitcoin, and leave the iShares Bitcoin Trust—which contains around $54 billion—in the dust as the leading corporate holder.
What Lies Ahead for Bitcoin?
The case for holding Bitcoin continues to strengthen. There’s growing support from retail investors as well as backing from major financial institutions. Washington and, soon, the White House, may also contribute to this momentum. If a notable Silicon Valley tech leader adopts Bitcoin, it could spark a massive buying frenzy.
As an investor, keep your eyes trained on Bitcoin shareholder activism. While Microsoft recently had the chance to take a monumental step with Bitcoin and chose otherwise, there’s still hope. Amazon is poised to be the next significant player in this unfolding narrative, potentially leading to new opportunities for Bitcoin investment. More content in ZCrypto.
