Microsoft’s Consideration of Bitcoin Investment
- The Microsoft shareholder meeting in December will vote on the prospect of investing in Bitcoin among other issues.
- This vote aligns with a broader trend of corporations viewing Bitcoin as a safeguard against inflation.
- The Microsoft board suggests shareholders oppose the proposal, highlighting prior thorough evaluation by management.
Recent disclosures from the Securities and Exchange Commission (SEC) indicate that Microsoft plans to introduce the Bitcoin investment proposal at its upcoming shareholder meeting on December 9th 2024. However, the specifics of the proposal—whether it involves direct investment in Bitcoin or merely consideration of it—are not fully clarified.
MicroStrategy and the Corporate Bitcoin Trend
The incorporation of Bitcoin into corporate balance sheets has gained traction, initially sparked by MicroStrategy’s significant acquisitions of Bitcoin in 2020, a time when the cryptocurrency was largely disregarded by businesses.
This trend has continued to expand, fueled by the remarkable success of MicroStrategy, whose stock surged by 246% this year, climbing from $68.39 on January 2nd to $235.89 as of this writing. This increase is largely attributed to the value of its extensive Bitcoin reserves, currently standing at approximately 252,000 BTC worth around $17.1 billion.
Following MicroStrategy’s lead, notable companies such as Tesla and Metaplanet Inc. have also significantly added Bitcoin to their asset portfolios.
As cryptocurrency gains acceptance and recognition, more firms are starting to appreciate Bitcoin’s potential as a hedge against inflation.
Concerns and Skepticism Persist
Despite Bitcoin’s impressive historical performance compared to other asset classes over the past decade, a number of companies remain hesitant about embracing the cryptocurrency. Currently, most major technology companies in the U.S. have not explored Bitcoin as a viable asset class or incorporated it into their financial strategies.
The Microsoft board’s position is to recommend shareholders against endorsing the Bitcoin investment proposal at the upcoming meeting, stating that “Microsoft’s management has already conducted comprehensive considerations of this topic.”
