Microsoft Shareholders to Vote on Proposal to Invest in Bitcoin at Annual Meeting on December 10, 2024

This proposal, titled “Assessment of Investing in Bitcoin,” has sparked significant interest and debate within both the tech and financial communities.

Microsoft shareholders will vote on a proposal to invest in Bitcoin at the company’s annual meeting on December 10. The proposal, titled “Assessment of Investing in Bitcoin,” was put forth by the National Center for Public Policy Research (NCPPR), a conservative think tank.

The proposal argues that Bitcoin could serve as an excellent hedge against inflation and suggests that Microsoft should allocate at least 1% of its total assets to the cryptocurrency.

The NCPPR highlights Bitcoin’s impressive performance, noting that it has outperformed corporate bonds by 94% over the past year and by 411% over the past five years.

However, Microsoft’s board of directors has advised shareholders to oppose the proposal. The board cites the volatility of Bitcoin as a primary concern, emphasizing the need for stable and predictable investments to ensure liquidity and operational funding.

The board also asserts that the company already evaluates a wide range of investable assets, including Bitcoin, and continues to monitor trends and developments in the cryptocurrency market.

The proposal comes amid growing institutional interest in Bitcoin. Notably, BlackRock, Microsoft’s second-largest shareholder with a 5.7% stake, has recently made substantial investments in Bitcoin through its iShares Bitcoin ETF.

This move by BlackRock has sparked discussion about the role of cryptocurrencies in corporate investment strategies. Microsoft’s decision to include this proposal on the agenda reflects the broader trend of increasing institutional interest in digital currencies.

The outcome of the vote could set a precedent for other tech giants considering similar investments. As the December 10 meeting approaches, the decision will be closely watched by Microsoft and its shareholders, and could have far-reaching implications for the adoption of Bitcoin and other cryptocurrencies in the corporate world.