QCP analysis indicates that Microsoft shareholders will vote on December 10 on the proposal to include BTC on the company's balance sheet. This decision could become an important catalyst for BTC to break through $100,000 by the end of the year. Major shareholders of Microsoft, such as Vanguard, BlackRock, and Fidelity, have indirectly held crypto assets, and if the proposal passes, it will not only benefit BTC but also further promote the growth of related crypto assets.
However, it is noteworthy that despite these positive expectations, the Microsoft board opposes this proposal. They believe conducting such a vote is unnecessary and that the company has already carefully considered various investable assets, including Bitcoin. Furthermore, the Microsoft board emphasizes the volatility of cryptocurrencies, considering it an important factor to assess when evaluating investments.
Nevertheless, the market reacted positively to this news, believing that Microsoft's participation could significantly enhance the market performance of Bitcoin and other cryptocurrencies. Therefore, the voting results from Microsoft's shareholders are still of great interest and could have a significant impact on the cryptocurrency market.
What are the specific contents of the proposal for Microsoft shareholders to vote on including BTC on the company's balance sheet?
The specific content of the proposal for Microsoft shareholders to vote on including BTC on the company's balance sheet is: to suggest that Microsoft invest at least 1% of its total assets in Bitcoin. This proposal was put forward by the conservative think tank National Center for Public Policy Research (NCPPR) to address inflationary pressures and argues that Bitcoin, as a 'digital gold', shows great potential in combating inflation and low-yield bonds, making it suitable for large companies as part of long-term asset allocation.
However, the Microsoft board opposes this proposal, believing that Bitcoin's price volatility is high and the company requires strong stable and predictable investments to ensure liquidity and operational funding. Therefore, the board recommends that shareholders vote against it.
Why does the Microsoft board oppose the proposal to include BTC on the company's balance sheet?
The Microsoft board opposes the proposal to include BTC on the company's balance sheet primarily based on the following reasons:
Financial Stability and Predictability: Microsoft emphasizes that its financial strategy requires stable and predictable investments to ensure liquidity and operational funding. The high volatility of cryptocurrencies like Bitcoin is an important consideration for the board, as it contradicts the company's need for financial stability.
Thorough Consideration Already Conducted: Microsoft states that the company's management has carefully considered the possibility of Bitcoin and other cryptocurrencies as investment options and concluded that the current volatility of this asset class is too high. Therefore, the board believes there is no need for another vote.
Risk Management: Microsoft's global finance team regularly evaluates various investment assets, including cryptocurrencies, to achieve diversification and risk management. Although Bitcoin has been considered in the past, due to factors such as its volatility, the board has not made further investment decisions at present.
Protection of Shareholder Value: Microsoft points out that during periods of sustained and severe inflation, the company's financial condition depends not only on its own operating situation but also on the accumulation of business profits. Companies that invest wisely in assets can enhance shareholder value, and thus the company has a responsibility to strive to increase profits and protect those profits from devaluation.
How do Vanguard, BlackRock, and Fidelity indirectly hold crypto assets, and what are their views on the cryptocurrency market?
The three major asset management firms Vanguard, BlackRock, and Fidelity have different views on the cryptocurrency market and have adopted various strategies to indirectly hold or invest in crypto assets.
Vanguard
Vanguard takes a cautious stance towards cryptocurrencies. Although its new CEO Salim Ramji has publicly expressed interest in cryptocurrencies, Vanguard has not launched a Bitcoin spot ETF nor does it offer crypto-related products on its brokerage platform. Vanguard believes that Bitcoin is more of a speculation than an investment and does not align with Vanguard's long-term investment model. However, Vanguard holds about 10% of shares in MicroStrategy, a company known for its substantial Bitcoin purchases. This suggests that Vanguard may be indirectly participating in the crypto market through its holdings.
BlackRock
BlackRock's attitude towards cryptocurrencies is relatively positive. As one of the largest asset management companies in the world, BlackRock has launched tokenized funds and introduced the first tokenized fund on Ethereum, investing in cash, U.S. treasury bonds, and repurchase agreements. Additionally, BlackRock has established partnerships with some of the largest cryptocurrency players and is attracting mainstream investors into the crypto market through a spot Bitcoin ETF. BlackRock considers Bitcoin to be a great asset, and its political influence has also driven the approval of spot BTC ETFs.
Fidelity
Fidelity has also taken action in the cryptocurrency space. Fidelity International has issued a tokenized money market fund using JPMorgan's Ethereum private blockchain, Onyx Digital Assets. Additionally, Fidelity, along with nine other investment management companies, has launched a spot Bitcoin fund that has already attracted over $12 billion in net inflows. This indicates that Fidelity is indirectly holding crypto assets through its products and maintains an open attitude towards cryptocurrencies like Bitcoin.
Summary
Overall, Vanguard takes a conservative stance on cryptocurrencies, primarily participating indirectly by holding shares in related companies; BlackRock actively enters the market through the launch of tokenized funds and spot Bitcoin ETFs; while Fidelity also participates in the crypto market through tokenized funds and spot Bitcoin funds.
What historical impacts have there been from the voting results of Microsoft shareholders on BTC and other cryptocurrencies' market performance?
The historical impact of the voting results from Microsoft shareholders on BTC and other cryptocurrencies' market performance mainly reflects in the following aspects:
Market Attention and Increased Investment Interest: When a company like Microsoft, one of the top three global market capitalization companies, considers investing in Bitcoin, the market pays close attention. Although Microsoft ultimately advised shareholders to vote against investing in Bitcoin, merely this proposal has generated widespread interest, indicating large tech companies' interest in Bitcoin and its potential impact.
Driving the Mainstreaming Process of Bitcoin: If Microsoft's proposal is approved, it will become one of the largest publicly traded cryptocurrency investors, which will help further strengthen Bitcoin's public market recognition and potentially trigger a chain reaction, encouraging more publicly listed companies to incorporate Bitcoin into their financial strategies. This trend will aid in the mainstreaming process of Bitcoin.
Market Volatility and Investor Confidence: Although the Microsoft board opposes investing in Bitcoin, deeming it unnecessary, their considerations have already had a positive impact on the Bitcoin market. For instance, after news broke that Microsoft was considering investing in Bitcoin, the cryptocurrency market experienced a surge, with Bitcoin prices breaking through a new high of $71,000 per coin.
The Influence of Institutional Investors: As one of the largest companies by market capitalization in the world, any investment decision by Microsoft regarding cryptocurrency is viewed as an important signal by the market. Therefore, even if the vote fails, Microsoft's considerations indicate institutional investors' interest in Bitcoin and recognition of Bitcoin as a safe-haven asset.
Policy Environment and Market Supply-Demand Relationship: The easing of global monetary policy has provided support for the rise of cryptocurrencies, with Bitcoin being seen as a tool to combat inflation, attracting a large influx of capital. The regulatory attitudes of various governments will also have a significant impact on Bitcoin prices.
How does the volatility of cryptocurrency affect the investment decisions of large tech companies like Microsoft?
The volatility of cryptocurrencies has a significant impact on the investment decisions of large tech companies like Microsoft. First, the Microsoft board has clearly stated that volatility is an important factor to consider when evaluating cryptocurrency investments. Due to the need for stable and predictable investments for corporate financial applications to ensure liquidity and operational funding, highly volatile cryptocurrencies are not suitable for their investment portfolio.
Moreover, although Bitcoin has shown safe-haven properties during certain periods and attracted an increasing number of institutional investors, Microsoft still chooses to continue monitoring trends and developments in Bitcoin and other cryptocurrencies rather than making immediate investment decisions. This indicates that, despite market sentiment potentially having a positive impact on Bitcoin prices, Microsoft prefers to cautiously assess potential risks.
Additionally, Microsoft has established strong capital management and diversification processes to address the risks posed by different asset classes. Therefore, even if the cryptocurrency market experiences a surge, Microsoft believes that the volatility of this asset class is currently too great for large-scale investment.
Overall, the volatility of cryptocurrencies requires large tech companies like Microsoft to be extremely cautious when making investment decisions.
