Microsoft & Amazon Investors Consider Bitcoin After MicroStrategy's Gains

Dec 10, 2024 at 8:32 AM
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Investors in major tech companies like Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN) are currently engaged in a critical evaluation process regarding potential investments in Bitcoin (BTC/USD). This comes in the wake of MicroStrategy Inc. (MSTR)'s remarkable success with its bitcoin strategy.

Tech Giants' Bitcoin Dilemma - A Strategic Shift?

Microsoft's Bitcoin Proposal

Microsoft shareholders are set to make a crucial decision on December 10. A proposal is on the table to consider Bitcoin as a balance sheet asset. Supported by the National Center for Public Policy Research, this proposal advocates holding at least 1% of assets in bitcoin, emphasizing its potential as an effective inflation hedge. However, the company's board has advised against it, highlighting the significance of maintaining stability in corporate treasury holdings. They believe their existing processes are adequate for safeguarding long-term shareholder value.Despite this, MicroStrategy's CEO, Michael Saylor, has presented to Microsoft's board, arguing for potential market value growth through bitcoin investment. But the betting site Polymarket indicates only a 13% chance of shareholder approval for Microsoft's Bitcoin evaluation.

Amazon's Bitcoin Allocation

There is also a proposal for Amazon to allocate 5% of its assets to Bitcoin. This highlights Bitcoin's astonishing 1,246% price increase over the past five years, which has outperformed corporate bonds. Business Insider reported on Tuesday about this significant proposal. It shows that other tech giants are taking notice and considering similar investment strategies.

MicroStrategy's Aggressive Strategy

MicroStrategy recently made a substantial acquisition of 21,550 bitcoins for approximately $2.1 billion, bringing its total holdings to over 423,000 BTC. This purchase was financed through the issuance and sale of company shares, generating net proceeds of about $2.13 billion. This move clearly demonstrates MicroStrategy's aggressive stance in the bitcoin market and has had a significant impact on other tech giants, prompting them to consider similar investments.In conclusion, the decisions and actions of these tech giants regarding Bitcoin investments are closely watched in the financial world. It remains to be seen how these proposals will unfold and what impact they will have on the future of these companies and the cryptocurrency market as a whole.