Microsoft board warns shareholders of BlackRock influence

• Microsoft shareholders will vote in December on whether the tech giant will publicly consider adding Bitcoin to its balance sheet, according to a notice to the SEC.
• These proposals are usually decided by a majority vote of shareholders and not by the board of directors.

On December 10, 2024, Microsoft shareholders will vote on a proposal called “Bitcoin Investment Assessment,” which studies whether the company should add Bitcoin to its balance sheet, according to an October 24 filing with the Securities and Exchange Commission. Stock Market and Securities (SEC).

If approved, the global technology giant will become one of the largest companies to invest in cryptocurrencies, surpassing giants such as Tesla and MicroStrategy. The Redmond giant is the third largest technology company in the United States, with a market capitalization of $3.157 billion.

The National Center for Public Policy Research (NCPPR), a US-based conservative think tank, put forward this proposal, urging Microsoft to diversify its investments by adding Bitcoin. The NCPPR is one of 100 conservative organizations projecting strategies toward 2025.

However, Microsoft’s board of directors recommended shareholders vote against it, noting that the company is already evaluating cryptocurrency trends, making the proposal “unnecessary.”

Microsoft’s Global Treasury and Investment Services team analyzes a wide range of assets to support the company’s operations, prioritizing those that improve diversification, protect against inflation, and minimize the risk of economic loss.

This proposal to consider Bitcoin coincides with important institutional moves, such as BlackRock’s purchase of more than $1 billion in Bitcoin on October 18, increasing its position through the IBIT spot ETF. BlackRock, which owns $24 billion in Bitcoin (1.76% of the total supply), is Microsoft’s second-largest shareholder, with a 5.7% stake, which has sparked speculation about its influence in the vote.

Among Microsoft’s main shareholders are also large institutional investors such as Vanguard, with a 9.1% stake, State Street with 3.98%, and Fidelity with 2.90%.

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

This indicates that the firm could 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’s investment in Bitcoin

This decision could shake up the cryptocurrency market, potentially boosting the price of Bitcoin and prompting other large companies to take similar steps. However, the council is proceeding cautiously.

Furthermore, this proposal highlights a broader debate in the technology sector: should companies take greater risks to remain competitive in a rapidly changing market or focus on maintaining stability in the short term? Microsoft’s decisions will be watched closely as they may encourage other companies to consider their strategies regarding cryptocurrency.

The cryptocurrency sector continues to bet on BTC. So far, the king of cryptocurrencies has gained 1.12% in the last 24 hours and It is trading at $67,752.