Microsoft Shareholders to Vote on Bitcoin Investment Proposal in December
Microsoft shareholders will vote in December on a proposal to assess investing in Bitcoin, according to a new regulatory filing. The company’s board recommends against this proposal, stating it already evaluates various investment options, including Bitcoin.
The proposal originates from the National Center for Public Policy Research (NCPPR), which suggests Microsoft adopt a strategy similar to MicroStrategy’s Bitcoin approach, reportedly yielding returns over 300% higher than Microsoft's stock performance this year. MicroStrategy has achieved success with its Bitcoin holdings despite its smaller scale compared to Microsoft.
The NCPPR argues that as institutional adoption of Bitcoin increases, partly due to spot Bitcoin exchange-traded funds, companies could benefit from small investments in Bitcoin. While acknowledging Bitcoin's volatility, the proposal emphasizes its potential as a hedge against inflation and declining corporate bond yields, suggesting even a 1% asset allocation to Bitcoin could be advantageous.
Despite this, Microsoft’s board advises shareholders to oppose the proposal, reinforcing that the company continuously assesses various investable assets. Microsoft accepted Bitcoin for Xbox store payments from 2014 to 2018 but has since shifted focus more towards artificial intelligence than blockchain or cryptocurrency investments.
The NCPPR describes itself as a non-partisan conservative think tank advocating for American liberty. However, given the board's recommendation and an emphasis on AI, a Bitcoin investment appears unlikely.
As of October 24, Microsoft’s (MSFT) stock reflected minimal change, increasing by just 0.03%. The upcoming vote presents an intriguing discussion for Microsoft shareholders, with the outcome uncertain ahead of the meeting on December 10.