Microsoft shareholders will vote in December on a proposal to invest in Bitcoin as a hedge against inflation, though the company's board has recommended a "no" vote.
At its upcoming December shareholder meeting, Microsoft will vote on a proposal to assess investing in Bitcoin, though the company’s board is recommending a “no” vote. The proposal was put forth by the National Center for Public Policy Research, which argued that Bitcoin could serve as a hedge against inflation and diversify Microsoft’s asset portfolio. The conservative think tank suggested that Microsoft allocate 1% of its total assets to Bitcoin.
Microsoft’s board, however, opposes the idea, citing Bitcoin’s volatility and affirming that the company already has processes in place to manage its assets effectively. The board also noted that past evaluations of digital currencies, including Bitcoin, were part of its broader investment strategy.
In its SEC filing, Microsoft acknowledged the importance of maintaining a stable and predictable investment portfolio to ensure operational funding. The board emphasized that its treasury services continue to monitor cryptocurrency trends but does not consider Bitcoin’s volatility appropriate for corporate treasury applications.
Despite this, some high-profile figures in the Bitcoin space, such as MicroStrategy’s Michael Saylor, have publicly encouraged Microsoft to explore Bitcoin investment as a way to potentially boost shareholder value. Saylor, whose company has made significant profits from its own Bitcoin holdings, suggested that Bitcoin could increase Microsoft’s value by up to a trillion dollars.
While major institutional shareholders like Vanguard and BlackRock will have the final say in December, the debate over whether Microsoft should invest in Bitcoin highlights the growing interest within the corporate world. Regardless of the outcome, the proposal reflects Bitcoin’s increasing relevance as an investment option, even among large, traditionally conservative companies like Microsoft.
