Polymarket bettors are casting doubts on the potential for Microsoft (MSFT) shareholders to approve a motion for the company to add Bitcoin to its balance sheet. The prediction market is assigning just an 11% chance of the proposal passing, reflecting widespread skepticism among investors.
Michael Saylor’s Proposal to Microsoft’s Board
Michael Saylor, executive chairman of MicroStrategy (MSTR), recently presented a proposal to Microsoft’s board, urging the company to invest in Bitcoin as part of its treasury strategy. Saylor suggested that Microsoft’s current cash strategy, involving dividends and stock buybacks, has caused it to miss out on substantial investment opportunities. He pointed out that Bitcoin has increased by over 1,200% in the past five years, a growth that could have significantly enhanced Microsoft’s value, potentially boosting its $3.2 trillion market cap.
Saylor believes that Bitcoin could serve as a hedge against inflation and economic instability, making it a viable investment option for Microsoft. However, the proposal faces significant opposition from both Microsoft’s board and shareholders.
Shareholder and Board Resistance
Historically, Microsoft’s shareholders have rejected similar proposals. In October, the National Center for Public Policy Research suggested that the company diversify its treasury by adding Bitcoin. However, Microsoft’s board recommended voting against the motion, citing the volatility and risk associated with cryptocurrency investments.
Polymarket bettors remain divided on the issue, with a majority of investors skeptical about the potential approval. Some argue that there is little need for Microsoft to invest in Bitcoin, given the abundance of options available for institutional investors to gain exposure to the cryptocurrency market. One Polymarket trader, holding a position against the proposal, warned that incorporating Bitcoin into Microsoft’s balance sheet could complicate its financial strategy, traditionally focused on stable investments.
Market Sentiment and Likely Outcome
Despite some traders speculating that Microsoft may allocate a small amount of funds for testing purposes, most believe the proposal will be rejected by both shareholders and the board. The upcoming Microsoft shareholder meeting, scheduled for December 10, will be pivotal in determining the fate of the proposal. The outcome could signal the company’s approach to cryptocurrency investments moving forward.
In conclusion, while the idea of Microsoft adding Bitcoin to its treasury has sparked debate, Polymarket’s current odds reflect a high probability of rejection. Despite Saylor’s arguments, many believe that the risks and volatility associated with cryptocurrency outweigh its potential benefits for a company the size of Microsoft.
