Bitcoin Listed As Key Voting Item For Microsoft In Shareholder Meeting

Microsoft is reportedly contemplating an investment in Bitcoin (BTC), based on a filing with the U.S. Securities and Exchange Commission made on Thursday. The company has added this topic as a voting item for its upcoming shareholder meeting set for December 10th.

The proposal titled Assessment in Investing in Bitcoin appears to originate via The National Center for Public Policy Research, a conservative think tank that is involved with Project 2025, which promotes a strongly conservative policy agenda.

Mixed Reactions

The proposal includes a statement recommending shareholders vote against it. The filing by Microsoft indicates that the board considers this proposal unnecessary, as management already gives the matter careful consideration.

In its Notice of Annual Shareholders Meeting and Proxy Statement for 2024, Microsoft explained, The Global Treasury and Investment Services team assesses various investable assets to support ongoing operations, including those anticipated to provide diversification and inflation protection, while mitigating risks associated with rising interest rates.

In addition, the company also mentioned that previous evaluations have in fact included Bitcoin and other cryptocurrencies, and it continues to observe trends in the crypto space to guide future decisions.

Massive Potential

Microsoft acknowledged that volatility is an important factor in assessing cryptocurrency investments and emphasized that it has established processes to manage and diversify its corporate treasury.

As the third-largest tech company in the U.S. with a market capitalization of $3.157 trillion, Microsoft would become the largest publicly traded crypto investor if this proposal passes, surpassing both MicroStrategy and Tesla.

Under securities law, eligible shareholders who own a specific amount of equity can propose items for a shareholder vote, including operational or policy changes. The final decision on such proposals is usually determined by a majority vote of the shareholders, rather than the Board of Directors.