Microsoft is preparing for a key shareholder meeting on December 10 where the future will be discussed Bitcoin as a potential investment will be a balmy topic. Bitcoin is currently trading at around $68,115, up approximately 1.22%.

The boost in interest is consistent with ongoing debates about cryptocurrency as an inflation hedge Microsoft investors find attractive.

Microsoft’s position on Bitcoin

In a recent filing with the U.S. Securities and Exchange Commission, Microsoft revealed that it would propose a rating Bitcoin investments during the upcoming conference.

The National Center for Public Policy Research (NCPPR) says Bitcoin has performed better than classic investments and may be a good way to protect against inflation.

EXCLUSIVE: Microsoft will have a proposed board resolution on “Bitcoin Investing Assessment,” according to an SEC filing.

The Board recommends that shareholders vote AGAINST this proposal. pic.twitter.com/0WveygitH9

— TFTC (@TFTC21) October 24, 2024

In turn, Microsoft’s board wants shareholders to vote against the plan because the company has already looked at a wide range of assets in which to invest, including cryptocurrencies.

According to the company spokesman:

“Volatility is one of the important aspects of all cryptocurrency investments for corporate treasury.”

This underscores the prudent strategy Microsoft has adopted to manage its corporate treasury and to enhance long-term shareholder value.

Management believes that the requested public review is unnecessary as it is already monitoring trends and developments in the cryptocurrency sector.

Shareholders with a large wig

Microsoft’s major shareholders include many major institutional investors such as Vanguard, BlackRock and State Street. These organizations own a vast percentage of the company and have considerable power to influence its policy direction.

While some shareholders are in favor of investing in Bitcoin, others may be more in agreement with management’s cautious stance.

It is crucial to note that BlackRock is actively growing its Bitcoin holdings through its ETFs. According to recent reports, BlackRock’s iShares Bitcoin Trust saw inflows of over $317 million in 24 hours.

This trend means that there is growing institutional interest in Bitcoin, despite Microsoft’s reluctance to implement comparable measures.

The road lies ahead

As the December conference prepares, the debate over Bitcoin’s importance in Microsoft’s investment plan is becoming more intense.

NCPPR argues that companies should allocate at least 1% of their assets to Bitcoin to support reduce the risk of inflation. Despite this project, Microsoft insists that the company’s current treasury distribution policy is sufficient.

Bitcoin has almost doubled in value in the last year and has seen a remarkable 414% growth over the past five years. While Microsoft may not be completely prepared to invest in cryptocurrency investments right now, the growing interest from institutional investors like BlackRock suggests that the discourse around Bitcoin is far from over.

Microsoft’s upcoming shareholder meeting will be the center of all attention, and it is unclear whether the tech giant will change its stance on cryptocurrencies or maintain its commitment to the stability of its investment strategy.

Featured image created with Dall.E, chart from TradingView