In a surprising move, Microsoft, a tech giant with a market capitalization of over $3 trillion, will hold a shareholder vote in December on whether to explore investing in Bitcoin. The proposal, submitted by shareholders who cite Bitcoin’s impressive gains, will be voted upon at the company’s annual meeting on December 10th.
While the Microsoft board recommends voting against the proposal, it highlights the growing institutional interest in Bitcoin. The shareholders, inspired by the success of MicroStrategy Inc., a company that holds a significant portion of Bitcoin on its balance sheet, argue that Microsoft should consider diversifying its portfolio with the cryptocurrency. Notably, MicroStrategy’s shares have outperformed Microsoft’s significantly in 2024, adding fuel to the argument for Bitcoin’s investment potential.
Furthermore, the proposal emphasizes that Bitcoin serves as an excellent hedge against inflation, a concern that has been growing in recent years. The shareholders also point out that BlackRock, Microsoft’s second-largest shareholder, operates iShares Bitcoin Trust ETF (IBIT), the largest Bitcoin-based investment fund in the U.S.
In response to the shareholder proposal, Microsoft stated that the vote is unnecessary as the company has already considered Bitcoin and other cryptocurrencies in its past evaluations. The company maintains that it continues to monitor trends and developments in the cryptocurrency market to inform future decisions.
This shareholder vote, even with the board’s recommendation against it, signifies a significant step towards mainstream adoption of Bitcoin. The growing institutional interest in Bitcoin is evident in the launch of 11 spot exchange-traded funds (ETFs) tracking Bitcoin prices in the U.S. earlier this year.
The move by Microsoft is a strong indicator that the world’s largest cryptocurrency is gaining traction among major corporations. Whether or not Microsoft ultimately decides to invest in Bitcoin, the proposal itself reflects the growing acceptance and potential of this digital asset in the global financial landscape.
