Crypto adoption: Shareholder vote on Bitcoin on the balance sheet
Microsoft is facing a significant shareholder decision: On December 10, shareholders are scheduled to vote on whether to add Bitcoin to the company’s balance sheet. The application, filed with the US Securities and Exchange Commission (SEC) on October 24, is titled “Exploring an Investment in Bitcoin.”
This puts the question of possible crypto adoption squarely in the hands of shareholders – a move that has the potential to move Microsoft towards cryptocurrencies. But management itself is hesitant and could vote against the proposal, raising questions about Big Tech’s future in the crypto space.
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Management attitude towards Bitcoin investment
Microsoft’s board emphasizes that management already has the skills necessary to make sound financial decisions that strengthen the company. From the management’s perspective, a Bitcoin investment based on a shareholder mandate is therefore not necessary.
The Global Treasury and Investment Services team’s focus is on risk management and portfolio diversification – factors designed to better protect the company. In doing so, the board makes it clear that a direct Bitcoin investment is currently not in Microsoft’s strategic interest.
Microsoft and Bitcoin – a checkered history
Microsoft has already gained some experience with cryptocurrencies and blockchain technology, but without firmly integrating them into the company strategy. In 2014, Microsoft was one of the first major companies to accept Bitcoin as payment for digital goods in the Windows and Xbox stores. But in 2018 it discontinued this option. The blockchain-based Azure Blockchain Service platform, which was intended to help companies build their own blockchain networks, was also discontinued in 2021 due to low demand.
Despite these steps towards crypto, Microsoft has not yet decided to add Bitcoin to its balance sheet – unlike Tesla, for example, which made headlines with direct crypto investment. The upcoming vote could now show whether this attitude will change.
Finally, it remains to be seen how Microsoft’s shareholders decide and whether the Big Tech landscape will open up to crypto adoption or cryptocurrencies through a potential Bitcoin integration at one of the largest technology companies in the world.
