Microsoft Could Be Pressured by Shareholders to “Consider Investing in Bitcoin”
Microsoft shareholders will get a vote on whether to require the tech giant to allocate assets to Bitcoin.
In a filing with the US Securities and Exchange Commission (SEC), Microsoft said that “considering investing in Bitcoin” will be an option on the shareholder ballot at the company’s annual shareholder meeting in early December.
SOURCE: https://t.co/DfqbViGPZa
— DEGEN NEWS (@DegenerateNews) October 24, 2024
The proposal was put forward by the National Center for Public Policy Research (NCPPR), a conservative lobbying group in the US. NCPPR argues that financial institutions in the US have increasingly embraced BTC since the emergence of Bitcoin ETFs earlier this year, not forgetting to mention the success of MicroStrategy thanks to its BTC holding strategy since 2020, with the company's stock price increasing by 300% in 2024 despite its business size being only a fraction of Microsoft's. Therefore, NCPPR believes that Microsoft should consider allocating at least 1% of its funds to Bitcoin.
However, right below the option, Microsoft's Board of Directors emphasized that they do not support the proposal and urged shareholders to vote against it, saying that it is "unnecessary" because "it has been carefully considered before".
JUST IN: Microsoft said they urge shareholders to vote against "Assessment of Investing in #Bitcoin" because "Microsoft's management already carefully considers this topic." 👀 pic.twitter.com/Q0lASSDBWm
— Bitcoin Magazine (@BitcoinMagazine) October 24, 2024
In a statement ahead of the 2024 shareholder meeting, a representative of the Board of Directors said:
“Microsoft’s Treasury and Investment team has been evaluating a variety of investible assets to support the company’s business plan, including assets that provide diversification and hedge against inflation, as well as mitigate the impact of declining interest rates. Previous assessments have included Bitcoin and other cryptocurrencies, and Microsoft will continue to monitor new trends and developments around cryptocurrencies to make appropriate decisions going forward.”
Microsoft is the third largest technology corporation in the United States with a market capitalization of $3.1 trillion. If the proposal to invest in Bitcoin is approved by the majority of the company's shareholders, Microsoft will become the next public technology giant to hold BTC, following MicroStrategy and Tesla.
Tesla recently made a surprise move to move $780 million worth of Bitcoin to new wallets, but has not sold this amount of BTC despite many previous rumors.
Many organizations and financial analysts from both Asia and the West have commented that 2025 will bring together many factors to promote Bitcoin growth, especially with the upcoming US presidential election, with candidate Donald Trump being a Bitcoin supporter.
