Polymarket bettors have expressed significant skepticism regarding Microsoft’s potential acquisition of Bitcoin. With only an 11% probability of approval, the market indicates that shareholders are unlikely to support the motion.
Michael Saylor’s Bitcoin Proposal to Microsoft
Michael Saylor, the executive chairman of MicroStrategy (MSTR), recently pitched an idea to Microsoft’s board, advocating for the tech giant to add Bitcoin to its balance sheet. He argued that Bitcoin’s impressive performance, with a 1,200% rise in the last five years, could potentially strengthen Microsoft’s financial position and further elevate its $3.2 trillion market cap. Saylor believes that Bitcoin would serve as a hedge against inflation and economic uncertainty.
However, Microsoft’s current treasury strategy, which relies heavily on dividends and stock buybacks, has led to some criticism. Saylor claims that the company has “surrendered” billions of dollars over the past five years, which could have been better utilized by investing in Bitcoin.
Opposition from Microsoft’s Board and Shareholders
Despite Saylor’s pitch, the idea has faced strong resistance from both Microsoft’s board and its shareholders. In October, a proposal from the National Center for Public Policy Research recommended that Microsoft diversify its holdings with Bitcoin. However, the company’s board advised against the motion, citing concerns about the inherent instability of cryptocurrencies and their unsuitability for a company of Microsoft’s scale.
Polymarket data shows that a large number of bettors are skeptical of the proposal. Many investors believe Microsoft’s already diverse portfolio of investments and the widespread availability of Bitcoin exposure options make it unnecessary for the company to purchase Bitcoin. Some traders argue that adding a volatile asset like Bitcoin could complicate Microsoft’s financial strategy, which has traditionally focused on stable investments.
Market Sentiment and Potential Outcome
While there are a few traders who speculate that Microsoft may allocate a small amount of capital to Bitcoin for experimentation, the overall sentiment on Polymarket suggests the proposal will be rejected. The upcoming shareholder meeting on December 10 will be crucial in determining whether Microsoft moves forward with any Bitcoin acquisition plans.
In conclusion, despite Michael Saylor’s convincing arguments, Polymarket bettors remain highly skeptical of the proposal’s approval. The strong opposition from Microsoft’s board and the risks associated with adding a volatile asset like Bitcoin make it unlikely that shareholders will approve the motion.
