NAIROBI (CoinChapter.com) — Microsoft and Amazon shareholders have urged the two tech giants to consider Bitcoin investments, inspired by the unprecedented gains MicroStrategy has made from the cryptocurrency. The proposals, initiated by the National Center for Public Policy Research (NCPPR), seek to incorporate Bitcoin into the companies’ financial strategies, calling it a hedge against inflation and a tool for long-term shareholder value.

Bitcoin as the new inflation hedge? Shareholders demand action

On December 10, Microsoft shareholders will vote on a proposal to evaluate whether Bitcoin should be part of the company's balance sheet. The NCPPR proposed the proposal and believes that Bitcoin has outperformed corporate bonds by more than 1,242% over the past five years, calling it an "excellent" inflation hedge.

The group called on Microsoft to allocate at least 1% of its holdings to Bitcoin, saying it has an obligation to explore assets that could outperform traditional options in times of inflation.

Amazon has received a similar proposal, albeit on a larger scale. The NCPPR asks the company to consider putting its 5% reserve funds into Bitcoin. Amazon's board of directors has not yet issued a formal recommendation, but shareholders are expected to vote on it at its annual meeting in the spring.

Inflation in the United States reached 2.6% in October and 2.4% in September, intensifying calls for corporate diversification strategies. Supporters believe that Bitcoin's long-term appreciation potential outweighs its volatility.

However, Microsoft’s board of directors recommended that shareholders reject the proposal, citing Bitcoin’s volatility and the need for stability in its corporate finances. Betting platform Polymarket estimated the probability of Microsoft shareholders approving the proposal at just 1 in 31, highlighting the skepticism surrounding the initiative.

MicroStrategy’s Bitcoin bet pays off — will big tech follow?

MicroStrategy's Bitcoin strategy is a game changer. The company's stock price rose 433.19% to close at $365.34, up $296.82 this year. Its massive Bitcoin holdings totaling 423,650 coins worth $42 billion drove this extraordinary rally.

The company's executive chairman, Michael Saylor, presented Microsoft's board of directors with a Bitcoin strategy that could add $5 trillion to its market value by 2034.

Recently, Saylor proposed a plan to Microsoft's board of directors, suggesting that the tech giant add $5 trillion in market value by adopting Bitcoin. However, Microsoft's board of directors recommended that shareholders oppose the proposal, saying that Bitcoin's volatility conflicts with its long-term financial strategy. The company's filing states that Bitcoin's volatility conflicts with its long-term financial strategy.

Amazon, which posted a profit of $15.3 billion in the third quarter, remains under pressure from shareholders to address the proposal. While the company has outpaced inflation through strong revenue growth, supporters believe Bitcoin could further strengthen its financial strategy.

As a shareholder vote approaches, the outcome could reshape corporate adoption of cryptocurrencies. Despite the huge gains from MicroStrategy’s bold strategy, big tech companies remain cautious about Bitcoin’s volatile price and whether Amazon and Microsoft’s leaps forward can define the next chapter in Bitcoin’s institutionalization journey.