Microsoft shareholders will decide in December whether the tech giant should formally explore investing in Bitcoin, according to a recent filing with the U.S. Securities and Exchange Commission (SEC). The proposal, titled “Assessment of Investing in Bitcoin,” will be put to a vote during a December 10 meeting. However, Microsoft’s board of directors is already advising shareholders to reject the idea, stating that the company already considers various investable assets, including Bitcoin.
The Push for Bitcoin Investment
The proposal was introduced by the National Center for Public Policy Research (NCPPR), a conservative think tank. NCPPR referenced MicroStrategy’s successful Bitcoin investment strategy, noting that the business intelligence firm has outperformed Microsoft by more than 300% in 2023, despite being a much smaller company. The group argued that corporate adoption of Bitcoin is becoming more common, pointing to the rise of spot Bitcoin exchange-traded funds (ETFs).
NCPPR acknowledged Bitcoin’s volatility but suggested it could act as a hedge against inflation and declining corporate bond yields. The group proposed that Microsoft could benefit from allocating even 1% of its assets to Bitcoin as a way to diversify and potentially enhance its financial strategy.
Microsoft’s Stance
While the NCPPR is pushing for Bitcoin consideration, Microsoft’s board remains unconvinced. In its filing, the board emphasized that the company already evaluates a broad spectrum of assets and that Bitcoin is not excluded from this assessment. The board sees no need for a public reassessment specifically focused on Bitcoin investment.
Despite this, the proposal underscores growing interest in corporate adoption of cryptocurrencies, as companies like MicroStrategy and Tesla have made headlines with their Bitcoin holdings.
Microsoft’s History with Bitcoin
Although the company is not currently investing in Bitcoin, Microsoft has dabbled in cryptocurrency in the past. Between 2014 and 2018, the tech giant accepted Bitcoin as a payment option for its online Xbox store. However, Microsoft has shifted its focus away from blockchain and cryptocurrency toward artificial intelligence technology, which has become a core element of its business strategy.
For now, it seems unlikely that Microsoft will make a major move into Bitcoin, but the upcoming shareholder vote will reveal how much support the idea has within the company.
