The shareholders reportedly rejected the proposal due to concerns over volatility and its confidence in existing financial processes. Meanwhile, Ray Dalio recently backed Bitcoin and gold as hedges against a looming debt crisis, and Eric Trump predicted that Bitcoin could reach $1 million. Bitcoin mining firm MARA Holdings expanded its Bitcoin holdings to 40,435 BTC, valued at $3.92 billion, and achieved a record-breaking 50 EH/s hashrate.
Microsoft Sticks to Traditional Treasury Strategy Over Bitcoin
Microsoft shareholders rejected a proposal to add Bitcoin (BTC) to the company’s balance sheet during the annual shareholder meeting on Dec. 10. The resolution was put forth by the National Center for Public Policy Research (NCPPR), a pro-free-market think tank, and argued that adopting Bitcoin would diversify profits and enhance shareholder value.
The proposal suggested allocating 1% to 5% of Microsoft’s profits to Bitcoin investments and pointed out the potential of Bitcoin as a transformative financial asset. The proposal also claimed it could create trillions in value while mitigating risks for shareholders.
During the meeting, NCPPR presented a pre-recorded video supporting its proposal. The video shed some light on Bitcoin’s growing institutional adoption, and mentioned BlackRock's Bitcoin ETF and MicroStrategy’s Bitcoin strategy as examples. The think tank described Bitcoin as volatile but maintained that ignoring it could jeopardize shareholder interests.
Bitcoin advocate Michael Saylor also addressed Microsoft’s board, and shared that Bitcoin could add close to $5 trillion to the company’s market cap. Despite these arguments, Microsoft’s board dismissed the proposal as unnecessary due to its existing robust processes for managing corporate treasury to ensure stability and predictability.
In its filing with the U.S. Securities and Exchange Commission (SEC), the board specifically referred to the risks associated with Bitcoin’s volatility and shared that it is very confident in the company’s current strategies for long-term shareholder benefit. The board also dismissed comparisons to MicroStrategy due to some differences in the firms’ approaches to the cryptocurrency market. Shareholders ultimately aligned with the board’s guidance by voting against the resolution.
The NCPPR pursued similar initiatives with other major corporations. On Dec. 8, the group submitted a proposal to Amazon, and suggested that Bitcoin could serve as a hedge against inflation and protect shareholder value. This proposal will be reviewed during Amazon’s shareholder meeting in April of 2025.
Ray Dalio Warns of Debt Crisis and Backs Bitcoin
Rumors suggest that people and companies not getting on the Bitcoin train now might regret it soon. Billionaire investor Ray Dalio recently voiced some of his concerns about a looming global financial crisis tied to unsustainable debt levels, and urged a pivot toward hard assets like Bitcoin and gold.
At a financial conference in Abu Dhabi, Dalio, who is the founder of Bridgewater Associates, spoke about the unprecedented indebtedness in major economies like the United States and China. He warned that the current trajectory could result in a debt crisis and a big decline in the value of money in the years ahead.
Ray Dalio (Source: South China Morning Post)
Dalio advised people to steer clear of debt assets, including bonds, and placed emphasis on the importance of focusing on broader economic forces rather than daily market fluctuations. He also believes in the value of hard money, and suggested gold and Bitcoin as viable options for investors looking to hedge against inflation and economic instability. While Dalio previously doubted the potential of cryptocurrencies like Bitcoin, he recently shifted his stance by advocating for its inclusion in investment portfolios. In 2022, he even recommended allocating up to 2% of a portfolio to Bitcoin alongside gold to counter inflationary pressures.
This endorsement happened amid broader debates about Bitcoin’s role in national financial strategies. Gold advocate Peter Schiff recently called on the Biden administration to sell all Bitcoin held by the U.S. government, and argued that a move like that could reduce the 2024 budget deficit and counter what he described as the harmful idea of establishing a U.S. Strategic Bitcoin Reserve.
Eric Trump Predicts Bitcoin Will Hit $1 Million
Eric Trump, the executive vice president of the Trump Organization and son of President-elect Donald Trump, shared his very optimistic vision for Bitcoin during a keynote speech at the Bitcoin MENA event in Abu Dhabi on Dec. 10. Trump predicted that Bitcoin will eventually reach $1 million per coin, and described the crypto as a “financial paradigm” capable of transforming the global economy. Trump strongly believes in Bitcoin’s role as a store of value and a hedge against inflation, political instability, and natural disasters.
Trump drew parallels between Bitcoin adoption and the rise of email, and shared that revolutionary technologies often take time to gain mass acceptance. He also referred to Bitcoin’s fixed supply of 21 million coins as a unique feature that will drive its value in the long term. Following his latest prediction, Trump has joined other well known advocates like Michael Saylor and Cathie Wood, who both forecasted that BTC could reach the $1 million milestone.
Eric Trump at MENA Abu Dhabi (Source: YouTube)
He also stressed the importance of early adoption, and warned that those who fail to embrace Bitcoin and digital currencies risk falling behind. Trump specifically referred to the growing interest in cryptocurrency among major institutions, and shared an anecdote about a friend whose bank, one of the world’s largest, recently launched a crypto desk and committed large resources to the space.
Trump finished his speech by celebrating Bitcoin’s recent milestone of surpassing $100,000 for the first time. He also praised the Bitcoin community for their dedication, and reiterated the Trump family’s support for the cryptocurrency.
MARA Buys $1.1 Billion in Bitcoin
Bitcoin mining giant MARA Holdings Inc. once again expanded its Bitcoin holdings after purchasing 11,774 BTC for $1.1 billion on Dec. 10. The crypto was bought at an average price of $96,000 per Bitcoin, and the purchase was funded through a zero-coupon convertible note offering that was conducted last month. With this acquisition, MARA’s total Bitcoin holdings rose to 40,435 BTC, which is valued at approximately $3.92 billion at the current price.
The company reported a 12.3% BTC Yield in the fourth quarter and a 47.6% yield for the year. This reflects the percentage increase in its Bitcoin holdings relative to its fully diluted shares outstanding. MARA implemented a treasury policy since July to retain all Bitcoin it mines while leveraging capital market instruments to boost its reserves even more, very similar to the strategy employed by MicroStrategy.
In addition to increasing its Bitcoin holdings, MARA also achieved a major milestone in mining operations. The company’s hashrate doubled in 2024 to reach 50 exahashes per second (EH/s). MARA is the first public Bitcoin miner to achieve this benchmark.
Despite these accomplishments, MARA’s stock experienced mixed performance. Shares closed 4.4% lower at $22.81 on Dec. 10 and have seen minimal after-hours recovery. Year-to-date, MARA’s stock is down 0.55%, which is in stark contrast to its remarkable 586% surge during 2023’s market rebound.
