Microsoft’s general shareholders’ meeting scheduled for December 10th is expected to be a high-profile event. The tech giant’s board and shareholders are being approached by proposals to have the company invest in Bitcoin.
“Bitcoin Investment Assessment” was proposed as an official ballot item, according to a report from the Securities and Exchange Commission (SEC) released late Thursday. This is raising expectations in the technology and finance sectors.
Should Microsoft start investing in Bitcoin?
to the U.S. SEC submitted The proposal has already met opposition from Microsoft’s board of directors. The board opposed the proposal, calling it “unnecessary.”
The Board explained that the Company’s management is giving due consideration to its various investment assets. In the past, this also included Bitcoin.
Microsoft’s Global Treasury and Investment Services team evaluates options, taking into account diversity, inflation protection and risk management.
The board maintained that management has the expertise to determine which assets would help stabilize Microsoft’s operations. This means there is no need for shareholder-mandated Bitcoin instructions.
Read more: How to Buy Bitcoin (BTC) and Everything You Need to Know
In recent years, Bitcoin has become controversial among institutions, with some seeing it as a hedge against inflation and a diversification tool, while others see it as too volatile for corporate finances.
The proposal to consider Bitcoin comes at a time when major institutional investors such as BlackRock have made significant inroads into the cryptocurrency market. BlackRock is Microsoft’s second-largest shareholder, with a 5.7% stake, and recently made headlines by purchasing $680 million worth of Bitcoin through its iShares Bitcoin ETF.
Against this backdrop, there is speculation as to whether BlackRock’s investment decision will affect Microsoft’s shareholder vote on Bitcoin. Microsoft’s shareholder list includes several prominent institutional investors. The largest shareholder is Vanguard with a 9.1% stake, followed by BlackRock, State Street, Fidelity, and former CEO Steve Ballmer.
“Do you know who Microsoft’s second largest shareholder is? Do you know who created the Bitcoin ETF?” bitcoin book Proof of MoneyTerence Michael, author of I was joking.
The diverse interests among these key stakeholders could make the upcoming vote an important indicator of institutional attitudes toward Bitcoin adoption by established technology companies.
Microsoft shareholder list, source: techopedia
But for now, BlackRock’s positive stance on Bitcoin suggests it may lead to support for the proposal among some shareholders. Despite the board’s recommendation to the contrary, it is a possibility.
BlackRock CEO Larry Fink recently expressed a positive outlook on Bitcoin, calling it an independent asset. I called it. This suggests that the company could support its involvement in the cryptocurrency space.
However, it is unclear whether BlackRock will publicly support the proposal. Analysts are watching the situation closely. The general view is shareholder votingIf it votes in favor of exploring Bitcoin investments, it could set an important precedent, which other tech giants could follow.
“… “The Board of Directors must consider the proposal, consult with advisors, record discussions in Board minutes, and face pressure and questions from shareholders and the media about considering BTC as a reserve asset.” said Presented as a business attorney representing corporations, entrepreneurs and investors.
Read more: Who will own the most Bitcoin in 2024?
Nonetheless, if the proposal gains traction, it could spur similar actions within other companies and lead to further institutional adoption of digital assets.
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