Microsoft Recently Announced Significant Plans Regarding Bitcoin that Could Potentially Transform Your Chances of Achieving Crypto Wealth Millionaire Status
Microsoft Recently Announced Significant Plans Regarding Bitcoin that Could Potentially Transform Your Chances of Achieving Crypto Wealth Millionaire Status
On December 10, Microsoft's (MSFT 1.14%) shareholders rejected a proposal urging the company to incorporate Bitcoin (BTC 1.49%) into its financial statements. Microsoft's leadership had recommended voting against the proposal, so its failure to pass was perhaps unsurprising.
If the proposal had passed, major corporations may have followed Microsoft's lead, initiating a Bitcoin adoption trend throughout corporate America. All that Bitcoin buying would have inevitably increased its value, generating Bitcoin millionaires in the process. But what's the plan now?
Bitcoin Shareholder Activism: A New Trend
It appears that Microsoft is not the sole focus of Bitcoin shareholder activism. The National Center for Public Policy Research, the think tank behind Microsoft's Bitcoin shareholder proposal, has already stated that its next target for such initiatives is Amazon (AMZN 1.80%). In April, Amazon shareholders will vote on a similar proposal, asking the company to explore Bitcoin adoption as a treasury asset.
With Bitcoin surpassing the $100,000 mark and a pro-crypto attitude prevalent within the incoming Trump administration, other companies could also consider incorporating Bitcoin into their financial statements. Those refusing could potentially face backlash from shareholders.
If so, companies would be forced to invest in something they endorse rather than divest from something they don't. Essentially, Bitcoin adoption would serve as an innovative method for boosting shareholder value.
Bitcoin Adoption in Corporate America
Presently, the largest publicly listed companies including Bitcoin in their financial statements are crypto-related businesses. These include Bitcoin mining companies like Coinbase Global (COIN 5.22%) and MicroStrategy (MSTR 13.22%).
There are exceptions, such as Tesla (TSLA 8.22%), but for the most part, companies purchasing Bitcoin at the moment have some form of connection to the crypto industry. They're investing in Bitcoin as it aligns with their business strategy. For instance, Coinbase Global requires Bitcoin for its cryptocurrency trading platform.
This trend may change soon, though. On November 20, three biotech companies announced plans to buy $1 million in Bitcoin each as a means of harnessing Bitcoin's growth potential and increasing their shareholder value. If successful, other companies may follow in their footsteps.
Implications for Bitcoin Investors
As an investor, what does this mean for you? If you're holding Bitcoin and aspiring to become a crypto millionaire, you should wholeheartedly support and welcome Bitcoin shareholder activism. Your hope should be for every American public company to start investing in Bitcoin, and consequently, boosting its price.
Consider the potential impact. During his three-minute presentation at the National Center for Public Policy Research, Michael Saylor, founder and executive chairman of MicroStrategy, proposed that Microsoft should allocate up to $100 billion in Bitcoin per year for its corporate treasury. According to him, this move could potentially add trillions of dollars to Microsoft's market capitalization.
Acquiring $100 billion in Bitcoin would be a substantial investment. To put things into perspective, MicroStrategy currently holds around $42 billion worth of Bitcoin in its financial statements. In just a single year, Microsoft would eclipse MicroStrategy to become the world's largest corporate Bitcoin holder, surpassing even the largest Bitcoin Exchange Traded Fund (ETF) – the iShares Bitcoin Trust, which holds approximately $54 billion worth of Bitcoin.
The Future of Bitcoin
The case for investing in Bitcoin is becoming increasingly compelling. With its growing popularity amongst individual investors, traditional financial institutions, and Washington D.C. policymakers, as well as potential support from the incoming White House, Bitcoin could witness a massive buying spree if a leading Silicon Valley tech company decides to adopt Bitcoin.
Keep an eye on Bitcoin shareholder activism. Although Microsoft missed an opportunity to make a significant decision with regard to Bitcoin, other companies like Amazon will have their chance soon to vote on Bitcoin adoption.
If Amazon's shareholders approve the Bitcoin adoption proposal in April, it could spark a trend among major corporations to incorporate Bitcoin into their financial statements, potentially increasing its value and creating more Bitcoin millionaires. As more companies invest in Bitcoin, it may become a strategic move to boost shareholder value, serving as an innovative method for corporate growth.