Crypto News Flash.com - Microsoft shareholders will vote in December on whether the tech giant could go public with plans to add bitcoin to its balance sheet, according to a filing with the U.S. Securities and Exchange Commission.

  • Such proposals are usually passed by a majority vote of shareholders rather than by the board of directors.

On December 10, 2024, Microsoft shareholders will vote on a proposal called the “Bitcoin Investment Evaluation,” which considers whether the company should add bitcoin to its balance sheet, according to an October 24 filing with the U.S. Securities and Exchange Commission (SEC).

If the decision is approved, the global tech giant will become one of the largest companies investing in cryptocurrency, overtaking giants such as Tesla and MicroStrategy. The Redmond giant is the third-largest tech company in the United States with a market capitalization of $3.157 trillion.

The National Center for Public Policy Research (NCPPR), a conservative think tank based in the US, introduced the idea, calling on Microsoft to diversify its investments by adding the leading cryptocurrency. Notably, the NCPPR is one of 100 conservative organizations projecting the year 2025.

However, Microsoft's board of directors advised shareholders to vote against the proposal, saying the company was already closely monitoring cryptocurrency trends, making the proposal "unnecessary." Microsoft's global treasury and investment services group considers a wide range of investable assets to support the company's ongoing operations, with a preference for those that enhance diversification, protect against inflation, and help minimize the risk of significant economic loss.

The move to consider Bitcoin coincides with major institutional moves in cryptocurrency markets by investors like BlackRock. On October 18, the firm purchased more than $1 billion worth of Bitcoin, adding to its position through the IBIT spot ETF. BlackRock owns $24 billion worth of Bitcoin, representing about 1.76% of all Bitcoin.

As Microsoft's second-largest shareholder with a 5.7% stake, the move has sparked speculation about whether BlackRock's investment choices could influence the outcome of Microsoft's shareholder vote on bitcoin.

Microsoft's largest shareholders also include other large institutional investors such as Vanguard, one of the world's most respected investment management firms, which owns 9.1% of the shares, State Street with 3.98%, and Fidelity, which owns 2.90%.

BlackRock CEO Larry Fink gave a positive assessment of Bitcoin, calling it an independent asset during the company's third-quarter earnings report.

This suggests that the company may be encouraging Microsoft to explore opportunities in the cryptocurrency sector. A shareholder like BlackRock backing Bitcoin investments could set a significant precedent for other tech giants to consider a similar direction.

The Impact of Microsoft's Bitcoin Investment

The move could shake up the cryptocurrency market, potentially driving up the price of Bitcoin and prompting other major companies to take similar steps. However, the board is being cautious.

The proposal also highlights a larger debate in the tech industry: Should companies take on more risk to remain competitive in a rapidly evolving market or focus on maintaining short-term stability? Microsoft’s choice will be closely watched, as it could prompt other companies to consider their cryptocurrency strategies. The crypto industry remains bullish on BTC, with the cryptocurrency up 1.12% in the past 24 hours to trade at $67,752.