Free Enterprise Project Proposes Bitcoin Inclusion at Microsoft

On Tuesday, Michael Saylor, the Chairman of MicroStrategy, will present a noteworthy proposal at Microsoft’s annual shareholder meeting. This proposal is put forward by the Free Enterprise Project (FEP) and suggests that Microsoft explore the idea of adding bitcoin to its balance sheet.

This proposal marks a historic first for FEP in terms of cryptocurrency submissions. It has gained significant attention in the media, especially within the cryptocurrency community, experiencing three major waves of coverage: the initial announcement in October when an SEC filing revealed the proposal, the announcement in November regarding Saylor's presentation, and a recent surge in coverage following Saylor's release of his presentation on X (formerly known as Twitter), along with interviews on platforms such as CNBC and Fox News.

Proposal 5 Overview

Proposal 5 calls on Microsoft’s board of directors to conduct a thorough assessment to determine whether diversifying the Company’s balance sheet by holding bitcoin would be beneficial for shareholders in the long term.

In its supporting statement, FEP highlights that MicroStrategy, despite being a smaller company than Microsoft, has significantly outperformed Microsoft's stock this year—showing a 313% increase. The trend of institutional and corporate adoption of bitcoin is on the rise, with BlackRock, Microsoft’s second largest shareholder, even offering a bitcoin ETF to its clients.

Considerations for Bitcoin Investment

While bitcoin is known for its volatility compared to traditional corporate bonds, the FEP posits that companies ought not to overlook the potential benefits of including bitcoin in their asset portfolios. Currently, bitcoin serves as a strong hedge against inflation, especially as corporate bond yields often fall below the actual inflation rate. Hence, companies should consider the advantages of holding a small percentage—perhaps even as little as 1%—of their total assets in bitcoin, instead of completely ignoring it.

FEP representatives also discussed the proposal on the Bitcoin Treasuries podcast with Tim Kotzman, emphasizing the rationale behind the proposal and urging corporate executives to consider adopting bitcoin.

In conclusion, we strongly encourage Microsoft shareholders to vote in favor of Proposal 5.

Bitcoin, Proposal, Microsoft