In a landmark event for the tech and cryptocurrency sectors, Microsoft (NASDAQ:) shareholders are set to consider an unconventional proposal today that could integrate into the company’s financial strategy. The National Center for Public Policy Research’s Free Enterprise Project (FEP) has presented Proposal 5, which urges Microsoft’s Board of Directors to diversify their balance sheets by adding Bitcoin. This move is seen as a hedge against inflation and a step towards preserving shareholder value amidst rising prices and low yields from corporate bonds.
Michael Saylor, the Chairman of MicroStrategy and a vocal proponent of Bitcoin, is representing FEP to advocate for the proposal at Microsoft’s annual shareholder meeting. This virtual event is scheduled for today at 8:30am PT. Saylor, who has a substantial following online, promoted the presentation last week and has since engaged in discussions on CNBC and Fox News to drum up support for the proposal.
The rationale behind Proposal 5 is the belief that Bitcoin serves as an effective inflation hedge, surpassing the performance of traditional assets like bonds, which currently yield returns below the true inflation rate. FEP contends that ignoring Bitcoin could be detrimental to shareholder value and advises that companies should at least consider allocating a portion of their assets to the cryptocurrency.
FEP’s mission is to redirect corporate focus towards generating revenue for shareholders rather than engaging in political activities. The organization asserts that nearly all American corporations, Microsoft included, have not sufficiently addressed the devaluation of corporate assets due to inflation. FEP regards Bitcoin as the most resilient asset against inflation and proposes its adoption to solve this issue. Furthermore, FEP believes that true free enterprise requires stable, tamper-proof currency that is not subject to political influence, a role they argue Bitcoin can fulfill.
The National Center for Public Policy Research, established in 1982, operates as a non-partisan, free-market conservative think-tank. It primarily receives support from individual donors, with minimal funding from foundations and corporations. Shareholders and interested parties can access more details about Proposal 5 through FEP’s ProxyNavigator, available on mobile and web platforms.
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