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Microsoft has urged its shareholders to vote against a proposal to assess investing in Bitcoin, which has rubbed the wider crypto industry the wrong way.
On 9 December, Microsoft will hold its annual shareholders' meeting, where shareholders can vote on a range of issues. One proposal is titled "Assessment of Investing in Bitcoin." However, the board has recommended that its shareholders vote against it.
Microsoft already “carefully considers this topic,” the board claimed in Securities and Exchange Commission (SEC) filing. “Past evaluations 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."
“As the proposal itself notes, volatility is a factor to consider in evaluating cryptocurrency investments for corporate treasury applications that require stable and predictable investments to ensure liquidity and operational funding. Microsoft has strong and appropriate processes in place to manage and diversify its corporate treasury for the long-term benefit of shareholders and this requested public assessment is unwarranted,” it continued.
The filing stated that the National Center for Public Policy Research will argue at this year's annual shareholders meeting that Microsoft should look into Bitcoin, as it strongly recommends companies allocate at least 1% of their total assets to Bitcoin. The group described the leading cryptocurrency as an "excellent, if not the best, hedge against inflation."
Microsoft has already used Bitcoin technology through its open-source decentralized identifiers networks (ION), which runs on Bitcoin's blockchain. This system allows for decentralized digital credentials—such as driver’s licenses or diplomas—that users could use for online identification. These "decentralized digital credentials" also ensure that users retain control over their data.
Urging shareholders to vote against Bitcoin investments has resulted in ridicule from the wider crypto community.
"Just like Blockbuster carefully dismissed Netflix," said one snarky commenter on X in response to the news.
"I urge Microsoft's management to consider how dumb they are," said another.
I urge Microsoft's management to consider how dumb they are
— Angarlo (@angarlo7) October 24, 2024
Just like Blockbuster carefully dismissed Netflix.
— lastcoinstanding.substack.com (@LastCoinStandng) October 24, 2024
One commenter even suggested selling their Microsoft shares and rotating the funds directly into Bitcoin. "The other shoe drops..Maybe I should sell all of my Microsoft shares? Go all in on Bitcoin with the proceeds?? As long as Bill is at Microsoft and on its board, things will get really lean there with that kind of attitude..I’m done with his genocide and Epstein Island vibes.." The commenter said.
The other shoe drops..Maybe I should sell all of my Microsoft shares? Go all in on Bitcoin with the proceeds?? As long as Bill is at Microsoft and on its board, things will get really lean there with that kind of attitude..I’m done with his genocide and Epstein Island vibes..
— Weed (@St30221Richland) October 25, 2024
"Even an idiot would know that the right decision is to vote "yes", get all of the 'pipes in place" and convert even 1% of treasury to bitcoin. This provides future optionality, on a moment's notice to raise/change this percentage at will. This is just basic fiduciary duty," said another.
Even an idiot would know that the right decision is to vote "yes", get all of the 'pipes in place" and convert even 1% of treasury to bitcoin.
— lastcoinstanding.substack.com (@LastCoinStandng) October 24, 2024
This provides future optionality, on a moment's notice to raise/change this percentage at will.
This is just basic fiduciary duty.🤷♂️
If Microsoft does invest in Bitcoin, it will be one of the few listed US companies to have Bitcoin in its reserves, alongside the likes of MicroStrategy.
While Microsoft shares have shot up 14.52% so far in 2024, MicroStrategy shares have soared 244%. MicroStrategy's current holdings stand at 252,220 BTC, valued at roughly $15.8 billion.
The company has consistently been at the forefront of institutional Bitcoin adoption, having made significant investments in the cryptocurrency since late 2020. This latest purchase further solidifies MicroStrategy's position as one of the largest corporate holders of Bitcoin.
Blockhead
