- Microsoft’s board recommends against the Bitcoin investment proposal, citing previous reviews and ongoing monitoring.
- Institutional Bitcoin investing is growing, with MicroStrategy and Bitcoin ETFs among the top holdings.
Microsoft’s upcoming shareholder meeting on December 10 will attract a lot of attention. A remarkable proposal for the technology giant to explore Bitcoin [BTC] investments will be part of the meeting agenda.
Microsoft’s Bitcoin Board Meeting
According to a recent submit Together with the US Securities and Exchange Commission (SEC), Microsoft’s board and shareholders will discuss several important issues during the meeting. These include the suggestion to adopt BTC as a hedge against inflation and broader economic shifts.
However, Microsoft’s board voted against this proposal, saying the company has already carefully considered such strategies, the filing shows.
As outlined in a company statement opposing the proposal, Microsoft emphasized its stance against Bitcoin investments.
“Previous assessments have included Bitcoin and other cryptocurrencies among the options considered, and Microsoft continues to monitor trends and developments related to cryptocurrencies to inform future decision-making.”
What else is going on?
This proposal, initiated by the National Center for Public Policy Research (NCPPR), pointed to MicroStrategy’s remarkable Bitcoin investment approach, which it said has outperformed Microsoft’s stock by more than 300% over the past year, despite the smaller scale of the activities of MicroStrategy.
The NCPPR also highlighted the growing trend of institutional and corporate interest in BTC. This has happened in part through spot Bitcoin ETFs, and it has been argued that while Bitcoin remains volatile, it could act as a potential hedge against inflation and falling corporate bond yields.
“Companies should at least evaluate the benefits of holding some, even just 1%, of their assets in Bitcoin.”
Bitcoin’s top holders and their growing influence
BTC’s institutional holdings have grown remarkably, with top players such as Satoshi Nakamoto, Binance, BlackRock, Grayscale and MicroStrategy all steadily increasing their stakes in the leading cryptocurrency.
Therefore, the race to secure Bitcoin has intensified to the point where BTC ETFs are approaching the total holdings attributed to Nakamoto, as highlighted by Bloomberg ETF analyst Eric Balchunas.
In fact, MicroStrategy’s prominent Bitcoin acquisition strategy has further inspired entities such as Japan’s Metaplanet. The organization recently raised 10 billion yen through a new share offering as part of its 11th series of share acquisition rights.
Tesla’s Q3 report also highlighted its role as the fourth-largest BTC holder among US listed companies, behind MicroStrategy, Marathon Digital Holdings and Riot Platforms.
Furthermore, SpaceX’s 8,285 BTC – valued at approximately $560 million – strengthens its position as the seventh-largest private Bitcoin holder.
Impact on BTC and MSFT
On October 25, BTC was trading at $67,576.65, up 1.02% in the past 24 hours, according to CoinMarketCap.
In contrast, shares of Microsoft (MSFT) saw minimal movement, closing at $424.7 on October 24 with a slight increase of 0.03%, according to Google Finance.
By October 25, MSFT shares had risen further to $424.73, marking a modest increase of 0.13%.