- The SEC allowed Dell to block a shareholder plan to assess Bitcoin as a company treasury asset.
- Dell said Bitcoin decisions belong to management and should not be driven by shareholder proposals.
- NCPPR pushed similar Bitcoin proposals to other tech giants but faced rejection from Dell and McDonald’s.
The U.S. Securities and Exchange Commission has allowed Dell Technologies to block a shareholder proposal related to Bitcoin. The decision gives Dell permission to exclude the proposal from its 2025 shareholder proxy materials.
Proposal Called for Bitcoin Assessment
The proposal came from the National Center for Public Policy Research (NCPPR), a conservative think tank based in Washington. It asked Dell’s board to evaluate adding Bitcoin to the company’s treasury assets. NCPPR cited rising inflation, Dell’s past involvement with Bitcoin, and growing institutional interest. It also referenced BlackRock’s recent support for a 2% Bitcoin allocation.
NCPPR has submitted similar proposals to other major corporations, including Amazon, Meta, and Microsoft. It aimed to push companies to treat Bitcoin as a legitimate treasury reserve. The group argued that Bitcoin could serve as a better store of value than cash or bonds.
Dell Opposed the Proposal
Dell Technologies responded by seeking the SEC’s permission to exclude the proposal. The company, through legal counsel, argued that treasury management falls under regular business operations. It said decisions involving cash or investment strategy should stay with management and the board.
Dell also stated the proposal could result in micromanagement. The company said that the Bitcoin suggestion dictated a specific financial outcome. It stressed that such matters require complex business judgment not suited for shareholder direction.
SEC Sides with Dell
The SEC agreed with Dell’s argument. In its letter, the agency stated it would not recommend enforcement action if Dell omits the proposal. The SEC determined that the subject involved ordinary business operations, affirming Dell’s right to exclude it.
This decision aligns with a similar ruling involving McDonald’s. That company also received a Bitcoin-related proposal from NCPPR. The SEC had permitted McDonald’s to exclude the item from its annual meeting materials.
Other Firms Show Varying Approaches
Microsoft handled a related proposal differently. It allowed the Bitcoin item to go to a shareholder vote. It even gave NCPPR the chance to present its case. However, the measure was eventually rejected during the 2024 annual meeting.
Dell, however, has avoided direct discussion of Bitcoin as a treasury asset. While its CEO previously hinted at interest on social media, the company has not taken further steps. The SEC ruling now gives Dell a formal basis to sidestep shareholder demands on this matter.
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