Super good news! Microsoft is expected to invest in BTC? The next shareholders' meeting will vote to decide

Microsoft shareholders propose evaluating investment in BTC, board of directors recommends against it

Global software giant Microsoft will hold its annual shareholders' meeting on December 10, when shareholders will vote on a proposal to 'evaluate investment in BTC.' This news has attracted widespread attention in the market. However, the Microsoft board explicitly recommended shareholders to vote against the proposal in a filing submitted to the United States Securities and Exchange Commission (SEC) on October 24.

Image source: SEC Item 5 states that the Microsoft Board of Directors recommends shareholders vote against BTC investment.

The proposal, initiated by the conservative think tank National Center for Public Policy Research, urges Microsoft to assess the possibility of BTC as a corporate investment, positioning it as a hedging tool against Inflation and other macroeconomic factors. The proposal suggests that at least 1% of the company's total assets should be invested in BTC.

The Microsoft board of directors said in a statement of opposition that the company's financial team has evaluated various investment options including BTC. They emphasized that the high volatility of BTC is contrary to the stability and Liquidity required for corporate financial operations.

The board of directors stated, 'We have established a sound process to manage and diversify the company's financial assets, and this proposal for public evaluation is unnecessary.'

The position of major shareholders is unclear, and the prospects for investing in BTC are uncertain.

Microsoft's major shareholders include Vanguard and BlackRock, with stakes of 9% and 7.82% respectively. BlackRock has been active in the encryption market recently, launching the BTC Spot exchange traded fund (ETF) with assets under management exceeding 26 billion US dollars. However, Vanguard remains cautious about cryptocurrency, stating that it has no plans to offer encryption-related ETFs to its clients.

Other major shareholders include State Street Corp., Capital Group, Morgan Stanley, and JPMorgan Chase. Although the market has high hopes for Microsoft's potential investment in BTC, the positions of large shareholders have not been made clear, adding uncertainty to the final voting results.

Image source: Crypto Politan Microsoft's current major shareholders

Microsoft's conservative financial strategy and enterprise encryption investment trends

Microsoft has always been known for its conservative financial strategy, investing a large amount of cash reserves in low-risk assets such as bonds. The board's opposition to investing in Bitcoin also reflects this strategy, as they prefer to prioritize stability over potentially high returns but unpredictable investments.

However, as more and more institutions and businesses enter the cryptocurrency market, there has been widespread discussion about whether Microsoft will change its stance. Currently, approximately 1.73% of the BTC supply (worth around $24.9 billion) is held by listed companies, with MicroStrategy being the largest holder, holding 252,220 BTC.

If Microsoft ultimately decides to invest in BTC, it will become one of the few large US companies to include cryptocurrency in its financial assets. However, whether Microsoft will adopt the proposal is still to be observed, given the explicit opposition of the board and the high volatility of BTC prices.

The market response is enthusiastic, the encryption community follows closely

After the news came out, the price of BTC rose by 2.3%, exceeding $68,000 (as of the time of drafting, the price of BTC was $68,149). Market analysts believe that if tech giants like Microsoft start investing in Bitcoin, it will have a significant impact on the entire encryption currency market, possibly attracting more institutional investors into the industry.

However, Microsoft is currently more focused on emerging technologies such as artificial intelligence, and has not shown strong interest in Crypto Assets. The company had accepted BTC as a payment method for the Xbox online store from 2014 to 2018, but later discontinued the service.

Image source: iThome. Microsoft accepted BTC as a payment method for the Xbox online store from 2014 to 2018.

Overall, the outcome of the vote on whether to evaluate the investment in BTC at the Microsoft shareholders' meeting will be a focus of market attention. Regardless of the final decision, it reflects the changing attitude of traditional enterprises towards cryptocurrency and the need to seek diversified investments in uncertain market environments.

[Disclaimer] The market is risky and investment should be cautious. This article does not constitute investment advice, and users should consider whether any opinions, viewpoints, or conclusions in this article are suitable for their specific situation. The responsibility for investment lies with the user.