Bitcoin Vote Looms: Microsoft Board Cautions Shareholders Amid BlackRock Influence

• Microsoft shareholders will vote in December on the tech giant’s potential public evaluation of adding Bitcoin to its balance sheet, according to a filing with the SEC.
• These proposals are generally decided by a majority shareholder vote rather than by the board of directors.

On December 10, 2024, Microsoft shareholders will vote on a proposal named “Assessment of Investing in Bitcoin,” which considers whether the company should add Bitcoin to its balance sheet, as noted in an October 24 filing with the Securities and Exchange Commission (SEC).

If approved, the global tech giant will become one of the largest companies to invest in Cryptocurrency surpassing giants like Tesla and MicroStrategy. The Redmond giant is the third largest tech firm in the United States with a market capitalization of $3.157 trillion.

The National Center for Public Policy Research (NCPPR), a self-described conservative think tank based in the United States, submitted this idea, urging Microsoft to diversify its investments by adding the leading cryptocurrency. Notably, the NCPPR is one of the 100 conservative organizations to project 2025.

However, Microsoft’s board of directors advised shareholders to vote against the proposal, stating that the company is already carefully considering cryptocurrency trends, making the proposal “unnecessary.” Microsoft’s Global Treasury and Investment Services team reviews a wide array of investable assets to support the company’s ongoing operations, prioritizing those that enhance diversification, guard against inflation, and help minimize the risk of significant economic losses.

The timing of this proposal to consider Bitcoin aligns with major institutional moves into cryptocurrency markets by investors like BlackRock. The company purchased over $1 billion in Bitcoin on October 18 increasing its position through the IBIT spot ETF. BlackRock holds $24 billion worth of Bitcoin accounting for roughly 1.76% of all the Bitcoin supply.

As Microsoft’s second-largest shareholder, with a 5.7% stake, this development has fueled speculation on whether BlackRock’s investment choices might impact the outcome of Microsoft’s shareholder vote on Bitcoin.

Microsoft’s top shareholders include other major institutional investors, such as Vanguard, one of the world’s most respected investment management companies holding 9.1%, as well as State Street with a 3.98% stake, and Fidelity which holds 2.90% of the shares.

Larry Fink, the CEO of BlackRock, shared a positive perspective on Bitcoin, describing it as an independent asset during the firm’s third-quarter earnings report.

This indicates that the firm may encourage Microsoft to explore opportunities within the cryptocurrency sector. A shareholder like BlackRock supporting the exploration of Bitcoin investments could create a significant precedent, encouraging other tech giants to consider a similar direction.

Implications of Microsoft Investing in Bitcoin

This decision could shake up the cryptocurrency market, potentially driving up Bitcoin’s price and prompting other major companies to take similar steps. However, the board is exercising caution.

Additionally, this proposal highlights a larger discussion within the tech industry: should companies embrace greater risks to stay competitive in a rapidly evolving market, or focus on maintaining short-term stability? Microsoft’s choices will be closely observed, as they may encourage other firms to consider their strategies regarding cryptocurrency. The crypto industry remains bullish on BTC. So far, the crypto king has gained 1.12% in the last 24 hours and is trading at $67,752.