Senior management opposes, the fate of the Bitcoin asset proposal is uncertain

On December 10, U.S. time, Microsoft will hold a shareholders' meeting to discuss the proposal to include Bitcoin in its balance sheet, which is about to be put to a vote. This decision is seen as one of the most talked-about events in the cryptocurrency market recently, as if Microsoft ultimately chooses to increase its Bitcoin holdings, it will be another international enterprise officially 'standing for' Bitcoin, following tech and financial giants like Tesla and MicroStrategy, which will undoubtedly have a huge impact on market trends and mainstream perceptions.

According to documents submitted to the U.S. Securities and Exchange Commission (SEC), the proposal to 'evaluate investing in Bitcoin' was put forward by the American conservative think tank National Center for Public Policy Research (NCPPR). NCPPR argues that in an era of high inflation, companies should consider allocating some funds to Bitcoin, as Bitcoin could become the 'best hedge tool' against inflation. The group recommends that Microsoft allocate at least 1% of its assets to Bitcoin to help prevent the erosion of corporate funds by currency devaluation.

However, Microsoft's board of directors has clearly stated its opposition to the proposal, believing that the company’s asset allocation strategy should remain stable and predictable. The board emphasized that there are already various investment tools and defensive assets in Microsoft's portfolio, and does not believe there is a need to include a highly volatile and speculative asset like Bitcoin at this time. Meanwhile, Microsoft founder Bill Gates has publicly opposed Bitcoin several times in the past, emphasizing its lack of intrinsic value, echoing the conservative stance of the company's senior management.

Further reading
Super good news! Is Microsoft likely to invest in Bitcoin? The next shareholders' meeting will vote on the proposal
To buy or to be sued? Proposer: If Microsoft refuses to invest in Bitcoin, be careful of being sued by shareholders

Supporters actively lobby, financial whales and new market trends

Although the senior management does not support it, the Bitcoin advocates behind them have not given up. NCPPR argues that as Bitcoin has surpassed the $100,000 mark and has received support from U.S. presidential candidate Donald Trump and Tesla CEO Elon Musk, the crypto market is moving towards mainstream assets. If Microsoft joins the ranks at this time, it could not only create potential returns for shareholders but also cast a vote of confidence in the market.

Among the supporters, the well-known crypto asset giant MicroStrategy is both a pioneer and an example. According to Bitcoin Treasuries data, its massive holdings reach 423,650 Bitcoins, with a market value of about $40.97 billion, accounting for about 2% of the total Bitcoin supply. MicroStrategy's long-term accumulation of Bitcoin is seen as a model for companies to include digital gold in their asset allocation. At the same time, investors and analysts are also trying through various channels to persuade Microsoft's decision-makers, citing favorable factors such as the improvement of the Bitcoin regulatory environment and global economic uncertainty, encouraging Microsoft shareholders to break through traditional thinking.

Source: Bitcoin Treasuries MicroStrategy holds 2% of the total Bitcoin supply

Voting results will affect the market, conservative stability vs. emerging trends

Although exchanges and market indicators show that new funds and retail investors are expecting Microsoft to throw a 'shock bomb', Polymarket's betting odds estimate the probability of the proposal passing at only about 14%, suggesting that the market generally remains pessimistic about Microsoft's ability to make a significant shift this time.

Source: Polymarket Online users predict that the probability of Microsoft shareholders approving the proposal to purchase Bitcoin is only 14%

However, even if this proposal is rejected, it will not change the long-term trend of the crypto industry becoming increasingly mainstream. Many analysts believe that regardless of Microsoft's attitude this time, as Bitcoin prices and recognition continue to rise, more and more giant enterprises may reassess the positioning and value of digital assets in the future.

If this proposal miraculously passes, the market impact could be self-evident. According to MacroTrends data, Microsoft currently holds $78.4 billion in cash and short-term investments, which is enough to boost Bitcoin prices and market enthusiasm in the short term. Crypto investors will closely monitor this historic moment, and the decisions made by Microsoft's shareholders and board will become key cases for the interaction between digital assets and traditional enterprises in the next phase.

Source: MacroTrends Microsoft currently holds $78.4 billion in cash and short-term investments

Regardless of the outcome, today's vote symbolizes that digital currency is stepping into deeper levels of traditional corporate governance. Whether Microsoft ultimately embraces Bitcoin will set the direction for the future at this moment.

Further reading
Will Microsoft embrace the Bitcoin era? MicroStrategy's founder says: Embracing it will make you earn 1 trillion dollars
Are large enterprises rushing in? U.S. think tank: Amazon should reserve Bitcoin, Microsoft is likely preparing to enter

[Disclaimer] The market has risks, and investment should be cautious. This article does not constitute investment advice, and users should consider whether any opinions, views, or conclusions in this article are suitable for their specific circumstances. Invest at your own risk.

‘Something big is happening tonight! Microsoft will decide whether to invest in Bitcoin, is a super good news about to arrive?’ This article was first published in ‘Crypto City’