McDonald's Faces Shareholder Proposal to Invest in Bitcoin

According to BlockBeats, McDonald's is set to hold its shareholder meeting next month, where a proposal from the National Center for Public Policy Research, a conservative think tank, suggests the company consider Bitcoin as a reserve asset. However, this proposal has not gained support from the company's management. The think tank argues that Bitcoin offers greater potential for appreciation and liquidity compared to real estate, which has traditionally been viewed as a more stable investment than cash and bonds. They referenced a famous quote from former McDonald's CFO and President Harry Sonneborn, emphasizing the need for the company to explore assets with higher growth potential. The proposal warns that more companies are incorporating Bitcoin into their balance sheets, and McDonald's risks falling behind if it does not follow suit. Despite this, McDonald's has shown reluctance. The company's legal representatives have contacted the U.S. Securities and Exchange Commission (SEC) to confirm whether they can exclude the proposal from the upcoming shareholder meeting agenda without facing enforcement action. The SEC responded last month, supporting McDonald's right to omit the proposal, stating it pertains to routine business operations and does not require a shareholder vote. This indicates that the proposal is unlikely to be discussed at the upcoming meeting. The trend of companies adopting Bitcoin is growing, yet opinions remain divided. For instance, at Microsoft's shareholder meeting last year, a proposal to invest 1% of the company's total assets in Bitcoin was rejected by the board. As cryptocurrencies continue to gain mainstream acceptance, the question of whether and how companies should integrate digital assets into their financial strategies is becoming increasingly significant. McDonald's response and the SEC's decision provide a reference point for other companies facing similar proposals.