Microsoft’s upcoming shareholder meeting on December 10 promises to be a highly interesting event. The tech giant’s board of directors and shareholders are facing a proposal for the company to invest in Bitcoin.
According to a Securities and Exchange Commission (SEC) document released last Thursday (24), the “Bitcoin Investment Assessment” was proposed as an official voting item. This generated anticipation in both technology and financial circles, including the crypto sector.
Why Microsoft Might Start Investing in Bitcoin?
The proposal, filed with the US Securities and Exchange Commission, has already met with resistance from Microsoft's board. The board has clarified its recommendation, arguing that it is "unnecessary".
They also explained that the company's management already considers a wide range of investment assets. It is worth noting that, in the past, this has also included Bitcoin.
Microsoft’s Global Treasury and Investment Services team routinely evaluates options with a focus on diversification. Additional considerations include inflation protection and risk management.
The board maintained that management has the expertise to decide on assets that would benefit Microsoft’s operational stability. This is without the need for a shareholder-mandated directive on Bitcoin.
Read more: How to Buy Bitcoin (BTC) and Everything You Need to Know
Bitcoin has sparked debate among institutions in recent years, with some viewing it as a hedge against inflation and a potential diversification tool. Meanwhile, others see it as too volatile for corporate balance sheets.
The proposal to consider Bitcoin comes at a time when some large institutional investors, such as BlackRock, have made substantial moves into the cryptocurrency markets. BlackRock, which is Microsoft’s second-largest shareholder with a 5.7% stake, recently made headlines for its $680 million purchase of Bitcoin through its iShares Bitcoin ETF (exchange-traded fund).
Given this scenario, there is speculation as to whether BlackRock’s investment decisions could influence Microsoft shareholders’ vote on Bitcoin. Microsoft’s shareholder list includes several prominent institutional investors. The largest of them, Vanguard, holds a 9.1% stake, followed by BlackRock, State Street, Fidelity, and former CEO Steve Ballmer.
Guess who is Microsoft’s second-largest shareholder? Guess who made Bitcoin ETFs happen? joked Terrence Michael, author of the Bitcoin book Proof of Money.
Decision may influence other big techs
The varying interests among these key stakeholders could make the upcoming vote a critical indicator of institutional sentiment toward Bitcoin adoption by established technology companies.
List of Microsoft Shareholders, Source: techopedia
For now, however, BlackRock's pro-Bitcoin stance signals a possible bias in favor of the proposal among some shareholders, despite the board's recommendation against it.
BlackRock CEO Larry Fink recently expressed a positive view on Bitcoin, calling it an independent asset. This suggests that the firm could advocate for Microsoft’s participation in the cryptocurrency space.
However, it remains unclear whether BlackRock would openly support the proposal. Analysts are watching the situation closely. The general sentiment is that a shareholder vote in favor of exploring Bitcoin investments could set a significant precedent, and other tech giants could follow suit.
…the board should consider the proposal, consult with advisors, record discussions in board minutes and face pressure and questions from shareholders and the press about BTC as a reserve asset, said Jesse, a business attorney who serves companies, entrepreneurs and investors.
Read more: What is a Bitcoin ETF? – Understand
But if the proposal gains traction, it could encourage similar action within other corporations, opening the door to greater institutional adoption of digital assets.
The article Microsoft considers investing in Bitcoin was first seen on BeInCrypto Brasil.
