Polymarket bettors are casting doubt on the potential approval of Microsoft’s (MSFT) proposal to add Bitcoin to its corporate balance sheet. The market is currently assigning only an 11% chance that the motion will pass, indicating skepticism among investors about the feasibility of the idea.
Michael Saylor’s Bitcoin Pitch to Microsoft
Michael Saylor, executive chairman of MicroStrategy (MSTR), recently made a pitch to Microsoft’s board suggesting that the company should consider adding Bitcoin as part of its treasury strategy. Saylor argued that Microsoft’s current cash management approach, which includes dividend payouts and buybacks, has caused the company to miss out on potential gains. He pointed out that Bitcoin’s price has surged by over 1,200% in the past five years, which could have significantly increased Microsoft’s $3.2 trillion market value.
Saylor emphasized that Bitcoin could act as a hedge against inflation and economic uncertainty, making it a viable investment for the company. However, this proposal has met with resistance, and many Polymarket participants doubt its chances of success.
Shareholder Reactions and Market Sentiment
Microsoft shareholders have previously rejected similar proposals. In October, the National Center for Public Policy Research recommended that Microsoft diversify its treasury by adding Bitcoin. However, the company’s board opposed the motion, citing the volatility and risks associated with cryptocurrency as reasons for not including it in the company’s financial strategy.
Polymarket bettors have shown a divided opinion on this issue. Some argue that institutional investors don’t see the need for Microsoft to acquire Bitcoin, as there are already numerous ways to gain exposure to the cryptocurrency market without putting the company’s balance sheet at risk. One trader, holding a position on the “No” side, stated that introducing volatile assets like Bitcoin could complicate Microsoft’s valuation process, which has traditionally focused on stable investments.
Possible Outcomes and Market Reactions
While a few bettors are optimistic that Microsoft might allocate a small amount of funds for Bitcoin as a test, the general consensus remains skeptical. Many investors believe that the board and shareholders will ultimately vote against adding Bitcoin to the company’s balance sheet. Microsoft’s next shareholder meeting, scheduled for December 10, will be the crucial moment for this proposal, and the outcome could have implications for the company’s future financial strategy.
In conclusion, while there is potential for Bitcoin to become part of Microsoft’s treasury, current market sentiment points toward a significant chance of the proposal being rejected, with only a small portion of bettors on Polymarket backing its approval.
