Microsoft shareholders will vote in December on whether the company should publicly consider adding Bitcoin to its balance sheet, according to an Oct. 24 filing with the U.S. Securities and Exchange Commission (SEC). The proposal, called “Assessment of Investing in Bitcoin,” will be presented during a December 10 meeting.
The idea was put forward by the National Center for Public Policy Research (NCPPR), which points to business intelligence firm MicroStrategy’s success with Bitcoin. MicroStrategy’s Bitcoin strategy has reportedly outperformed Microsoft by over 300% this year, despite its smaller scale.
The NCPPR argues that Bitcoin, while volatile, could help hedge against inflation and corporate bond yields. It suggested that companies like Microsoft should consider holding even a small percentage, such as 1%, of their assets in Bitcoin.
In a company statement opposing the proposal, “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,”
Despite this, Microsoft’s board recommends that shareholders vote against the proposal. The company claims it already evaluates a broad range of investable assets, including Bitcoin, but doesn’t see a need to make a specific public assessment.
Although Microsoft previously accepted Bitcoin payments for its Xbox store between 2014 and 2018, the company has shifted its focus more toward artificial intelligence than blockchain technology.
The December 10 shareholder meeting will cover key votes, including governance policies, executive compensation, and board member elections. The Bitcoin investment proposal reflects the growing interest in corporate cryptocurrency adoption.
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