Proposal Templates - Bitcoin Fiduciary Duty

Below is a comprehensive shareholder proposal template advocating for Bitcoin adoption in a company's financial strategy. You can copy the text and customize it according to your needs.

How to Submit a Shareholder Proposal

Submitting a shareholder proposal involves several key steps. Below are basic instructions to help you navigate the process and find the right contacts within the company.

Review the Company's Guidelines: Visit the company's investor relations website or refer to their latest proxy statement to find specific guidelines and deadlines for submitting shareholder proposals.
Understand Regulatory Requirements: Familiarize yourself with rules like SEC Rule 14a-8, which outlines eligibility criteria for proposals.
Determine Eligibility: Ensure you meet ownership requirements, such as holding a minimum number of shares for at least one year.
Identify the Correct Contact: Find the company's Corporate Secretary or Investor Relations department. This information is typically available in the company's proxy statement or on their investor relations website. Searching "Corporate Secretary [Company Name]" can help.
Prepare Your Proposal: Customize the provided template to align with the company's guidelines, including word limits and formatting rules.
Include Proof of Ownership: Attach a letter from your broker or bank verifying your ownership of the company's stock.
Submit the Proposal: Send your proposal and proof of ownership to the Corporate Secretary via certified mail or a trackable delivery method before the deadline.
Follow Up: Request confirmation of receipt and address any feedback promptly.

Shareholder Proposal: Assessment of Bitcoin Adoption

Proposal Summary

We request that the Board of Directors commission a report, to be made available to shareholders by a reasonable date, assessing the potential benefits and risks of adopting Bitcoin as a part of the company's financial strategy, including but not limited to holding Bitcoin on the corporate balance sheet and accepting Bitcoin for goods and services.

Supporting Statement Introduction:

In light of the evolving global financial landscape and the emergence of digital assets, it is imperative for [Company Name] to evaluate innovative financial strategies that could enhance shareholder value.

1. Comparative Corporate Performance:

MicroStrategy (MSTR): As of November 2024, MicroStrategy holds approximately 331,200 bitcoins, valued at over $30 billion. The company's stock has appreciated nearly 500% in 2024, showcasing Bitcoin's significant impact on shareholder value.
Tesla, Inc. (TSLA): Tesla's investment of $1.5 billion in Bitcoin and acceptance of Bitcoin as payment for its products have highlighted the mainstream corporate adoption of digital assets.
Block, Inc. (formerly Square): Block integrates Bitcoin into its financial services, including its popular Cash App. This strategic move has positioned the company as a leader in fintech innovation.
Marathon Digital Holdings: As a top Bitcoin mining company, Marathon has expanded its operations and holdings, contributing to a positive impact on its stock performance and market positioning.

2. Inflation Hedge and Store of Value:

Economic Context: Rising inflation rates have eroded the purchasing power of traditional currencies, emphasizing the need for assets like Bitcoin.
Bitcoin's Role: With a capped supply of 21 million coins, Bitcoin serves as a deflationary asset, providing a hedge against inflation.
Historical Performance: Over the past decade, Bitcoin has consistently outperformed traditional inflation hedges like gold.

3. Institutional Adoption and Market Maturation:

Regulatory Developments: Approval of Bitcoin Exchange-Traded Funds (ETFs) and clearer regulatory frameworks have legitimized Bitcoin in institutional finance.
Corporate Integration: Major corporations and financial institutions are integrating Bitcoin into their operations, indicating a significant shift in market acceptance.
Risk Mitigation: Enhanced liquidity and market infrastructure have reduced operational risks associated with Bitcoin transactions.

4. Fiduciary Responsibility:

Maximizing Shareholder Value: As fiduciaries, the Board and management have a duty to consider strategies that enhance shareholder returns.
Diversification Benefits: Bitcoin's low correlation with traditional assets can improve the risk-adjusted returns of the company's investment portfolio.
Innovation Leadership: Proactively exploring Bitcoin adoption positions [Company Name] as an industry innovator.

Conclusion:

By conducting a thorough assessment of Bitcoin's potential benefits and risks, [Company Name] can make informed decisions that align with its strategic objectives and fiduciary duties. We urge the Board to consider this proposal seriously and provide shareholders with their findings.

Instructions for Customization:

[Company Name]: Replace with the official name of the company.
[Date]: Use the date when you plan to send the proposal.
Statistical Data: Update any figures or statistics with the most recent data available.
Attachments: Ensure you include any required documents as per the company's shareholder proposal guidelines.

Disclaimer:

*This template is provided for informational purposes only and should not be construed as legal or financial advice. The author does not guarantee the accuracy or completeness of the information contained herein. Users should consult with a qualified professional before taking any action based on this template.*

Shareholder Proposal Template

How to Submit a Shareholder Proposal

Shareholder Proposal: Assessment of Bitcoin Adoption