#1467 Ethan Peck | How To Get Microsoft & Amazon To Buy Bitcoin
Jan 9, 2025
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Ethan Peck, the Deputy Director for the National Center for Public Policy Research’s Free Enterprise Project, advocates for Bitcoin adoption in major companies like Microsoft and Amazon. He shares insights on the shareholder proposal process, explaining how it could enhance shareholder value amid economic uncertainty. Peck also discusses the power of retail shareholders in influencing corporate governance and the challenges of promoting cryptocurrency within traditional financial frameworks. His vision could reshape corporate strategies and redefine asset management.
Ethan Peck's proposal to Microsoft advocates for assessing Bitcoin as a safeguard against inflation, promoting fiduciary duty to protect shareholder value.
The podcast emphasizes the significance of grassroots movements in corporate governance, urging shareholders to engage in influencing asset management decisions.
Deep dives
Proposal for Bitcoin on Microsoft’s Balance Sheet
A proposal was submitted to Microsoft suggesting the company include Bitcoin on its balance sheet due to the diminishing value of cash amid inflation. Ethan Peck, who is involved with the Free Enterprise Project, presented this idea as a way for Microsoft to uphold its fiduciary duty by safeguarding shareholder value. The proposal did not mandate the direct purchase of Bitcoin but instead asked for an assessment of its potential benefits. This approach aims to encourage corporations to reconsider their substantial cash reserves in light of inflationary pressures.
The Process of Submitting Shareholder Proposals
Submitting a shareholder proposal involves a complex process that requires ownership of a certain number of shares over specific time periods. Ethan Peck has submitted approximately 150 proposals in three years, navigating technicalities that could lead to rejection based on language and formatting issues. Emphasizing the importance of precision in proposal submissions, he encourages others to join this grassroots effort to hold corporations accountable. The more shareholders participate in this process, the greater the potential impact on corporate decision-making regarding assets like Bitcoin.
Engagement with Institutional Investors
The conversation included insights into the voting behavior of large institutional investors, such as BlackRock and Vanguard, who play a significant role in approving shareholder proposals. These firms often vote in line with their established policies, which may be influenced by staff perceptions of volatility associated with Bitcoin. There is an effort to engage these institutions in discussions about the financial implications of holding cash versus investing in Bitcoin, despite historical resistance. The complexity of the corporate governance landscape means that building momentum will take time, but consistent outreach could foster more open-mindedness over the long run.
Future Plans and Community Involvement
The goal moving forward is to build a broader grassroots movement that promotes fiduciary responsibility among corporations while increasing awareness of the benefits of Bitcoin. Ethan Peck aims to expand the scope of proposals to include more companies with significant cash reserves, promising greater engagement in corporate governance dialogues. Encouragement for other shareholders to participate in this movement is also highlighted as essential for effecting change. By collaborating with individuals who share these aims, there is potential to create a significant impact on how corporations manage their assets.
Ethan Peck is the Deputy Director for the National Center for Public Policy Research’s Free Enterprise Project. He also wrote a proposal to Microsoft and Amazon for them to put bitcoin on their balance sheet. In this conversation we discuss what he did, why he did it, how these shareholder proposals work, Saylor’s 3 minute pitch, how it gets approved, and what the impact will be.
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