One of Microsoft’s shareholders will ask you to consider investing in BTC, but the company has expressed its opposition.
Microsoft will soon vote on a proposal asking it to evaluate whether it should invest in Bitcoin (BTC), according to an Oct. 24 filing with the SEC.
The tech giant acknowledged that one of its shareholders, the National Center for Public Policy Research (NCPPR), plans to put the proposal up for a vote during Microsoft’s annual shareholder meeting on December 10.
Microsoft believes that such an evaluation is unnecessary. He saying:
“Microsoft has robust and appropriate processes in place to manage and diversify its corporate treasury for the long-term benefit of shareholders and this requested public assessment is not warranted.”
Microsoft said its management is already “carefully considering [the] issue” and acknowledged factors surrounding the proposal. It said it has examined Bitcoin and other potential cryptocurrencies for investment in the past and continues to monitor trends. Microsoft also called cryptocurrency price volatility a factor to consider.
Consequently, Microsoft’s board of directors recommended that shareholders vote against the proposal at the next meeting.
NCPPR requested the evaluation to determine whether Microsoft’s addition of Bitcoin to the balance sheet is in the long-term interests of shareholders.
The organization suggested that investing in Bitcoin could protect against inflation affecting other Microsoft assets, noting that Bitcoin has recently seen price increases and has at times outperformed corporate bonds on average.
However, the NCPPR recognized the risk of volatility and suggested that companies should not hold excessive amounts of Bitcoin. Instead, he said companies should evaluate the benefits of owning “some, even just 1%, of [their] assets in Bitcoin.”
The NCPPR proposal also noted that Microsoft’s second-largest shareholder, BlackRock, offers a Bitcoin ETF. There is no indication how BlackRock will vote.
Additionally, he established a connection with Microstrategy (MSTR), a company that does less business than Microsoft but has a significant Bitcoin investment strategy. NCPPR said MSTR has outperformed Microsoft stock (MSFT) by 313% this year.
in a X post, Michael Saylor, CEO of Microstrategy, invited Microsoft to contact him. Saylor turned to Microsoft CEO Satya Nadella and said, “if you want to make the next trillion dollars for MSFT shareholders, call me.”
Microstrategy announced its third quarter 2024 financial results on October 30, revealing that it held 252,220 BTC with a market value of $16 billion as of September 30.
Other industry members have also weighed in. Daniel Cawrey, chief strategy officer at crypto wallet development company Tonkeeper, reacted optimistically. In a statement to Bitcoin.com, he said the news means Bitcoin is being considered in boardrooms despite opposition from Microsoft. Ultimately, the debate marks a “positive development for Bitcoin as a diversification tool,” he concluded.
Disclaimer: The information contained herein is provided without regard to your personal circumstances, therefore it should not be construed as financial advice, investment recommendation or an offer or solicitation to trade in cryptocurrency.
