Microsoft Shareholders to Vote on Potential Bitcoin Investment
Microsoft shareholders will soon vote on a proposal to assess Bitcoin as a potential investment, despite the board’s recommendation to reject it.
Microsoft shareholders will soon decide whether the tech company should assess investing in Bitcoin, according to a new regulatory filing. Shareholders are set to vote on this proposal in December, with a recommendation from Microsoft’s board against it. The board claims the company already considers various investment options, including Bitcoin.
The idea came from the National Center for Public Policy Research (NCPPR), which suggests Microsoft follow the example of MicroStrategy’s Bitcoin strategy, which has reportedly led to substantial returns—over 300% higher than Microsoft’s stock performance this year. MicroStrategy, a business intelligence firm, has seen notable success with its Bitcoin holdings, despite operating at a much smaller scale than Microsoft.
The NCPPR argues that with more institutional and corporate adoption of Bitcoin, driven partly by the availability of spot Bitcoin exchange-traded funds, companies could benefit from a small Bitcoin investment. While recognizing Bitcoin’s volatility, the proposal highlights its potential as a hedge against inflation and weakening corporate bond yields. The organization suggests that even allocating 1% of Microsoft’s assets to Bitcoin could be beneficial.
Despite this push, Microsoft's board is advising shareholders to vote against the proposal. It emphasizes that the company already evaluates numerous investable assets, including Bitcoin, as part of its strategy. In the past, Microsoft accepted Bitcoin for online Xbox store payments from 2014 to 2018, though it has since focused more on artificial intelligence technologies than blockchain or cryptocurrency investments.
The NCPPR, which calls itself a non-partisan, conservative think tank focused on securing American liberty, is leading the proposal. However, with Microsoft’s board’s recommendation and a greater focus on AI, a Bitcoin investment seems unlikely.
Microsoft’s (MSFT) stock showed minimal change on Oct. 24, edging up just 0.03%, based on recent trading data. The proposal brings forward an interesting debate for Microsoft shareholders, but the outcome remains uncertain as the Dec. 10 meeting approaches.
