Why McDonald's is Saying No to Bitcoin: SEC Weighs In
Thestreet3 days ago
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Why McDonald's is Saying No to Bitcoin: SEC Weighs In

General Bitcoin News
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Summary:

  • SEC permits McDonald's to exclude Bitcoin proposal from shareholders’ meeting.

  • NCPPR argues for Bitcoin adoption to protect profits from inflation.

  • McDonald's legal team claims proposal falls under ordinary business operations.

  • SEC agrees, stating the proposal relates to routine operations.

  • Similar proposals by NCPPR to Amazon and Microsoft have faced rejection.

The SEC has allowed McDonald’s to bypass a proposal regarding Bitcoin treasury assessment from a shareholder, the National Center for Public Policy Research (NCPPR). This group, known for advocating for Bitcoin adoption among major corporations, suggested during the upcoming 2025 annual shareholders’ meeting that McDonald’s consider adding Bitcoin to its treasury.

The NCPPR argued that companies should not only focus on profitability but also on wise investments to protect against inflation. They pointed to the success of firms like MicroStrategy, whose stock has reportedly surged 2,360% more than McDonald's over the past five years since adopting Bitcoin.

However, McDonald’s legal team reached out to the SEC to confirm that the proposal could be excluded from the meeting agenda without any repercussions. They contended that such investment strategies fall under the company’s ordinary business operations, thus not requiring shareholder approval.

In March, the SEC agreed with McDonald’s stance, stating that the proposal relates to the company’s routine operations and would not recommend enforcement action if omitted. This decision highlights the ongoing tension between corporate governance and shareholder activism in the cryptocurrency space.

Last year, the NCPPR also attempted a similar initiative with Amazon, advocating for a 5% Bitcoin allocation in its portfolio. However, like McDonald's, Amazon shareholders have shown reluctance towards such proposals, citing volatility as a significant concern. Previous attempts, such as a proposal to Microsoft, were also rejected, demonstrating the challenges of pushing Bitcoin into mainstream corporate treasury strategies.

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