9:00 a.m. ▪ 5 min reading ▪ by Luc Jose A.
Microsoft, a global technology giant, is considering the possibility of investing in Bitcoin. This proposal, which will be put to a vote at the next general meeting of shareholders in December 2024, is attracting the attention of the entire financial sphere and crypto markets. If approved, the Redmond giant would become one of the largest institutional investors in crypto, joining players like Tesla and MicroStrategy. But behind this announcement lies a complex strategy that the board of directors does not seem to fully embrace.
A controversial proposal on the table
When filing a document with the Securities and Exchange Commission (SEC), Microsoft confirmed that it had included on the agenda of its next general meeting a proposal to evaluate an investment in Bitcoin. This idea was submitted by the National Center for Public Policy Research, a conservative think tank, which wants to see Microsoft diversify its investments through the choice of the most popular crypto. Microsoft’s board of directors, however, recommends that its shareholders vote against this proposal. According to the board, the company is already “carefully considering” crypto trends, which make this proposal “unnecessary.”
In its official document, Microsoft precise that “its Global Treasury and Investment Services team regularly evaluates various assets to protect the company against inflation and diversify its economic risks”. Cryptos, including Bitcoin, have already been examined in previous assessments. However, the company highlights the inherent volatility of these assets, a central element in its reluctance to go further with this type of investment at the moment.
The potential implications of Microsoft adopting Bitcoin
If this proposal were to be approved by shareholders, Microsoft would rise to the rank of the largest listed company to invest in Bitcoin, and would surpass giants like Tesla and MicroStrategy. This decision could shake up the crypto market, causing the price of Bitcoin to rise and encouraging other large companies to follow suit. But the board of directors remains cautious. “Volatility is a factor to consider in evaluating investments in cryptos,” Microsoft recalls in its presentation file, an implicit warning about the risks associated with such a strategy.
Beyond financial considerations, this proposal also reflects a broader debate within the technology sector: should we take more risks to remain competitive in a constantly evolving market, or should we prioritize short-term stability? Microsoft’s decisions will be closely scrutinized, as they could influence other technology companies to reevaluate their approach to cryptos. This vote could also serve as a test to assess the confidence of institutional investors in Bitcoin, which is on the rise despite its volatility.
Whatever the outcome of this vote in December, the mere inclusion of such a proposal in the agenda when filing a document with the SEC shows the extent to which cryptos have become an essential subject for large companies. Microsoft, known for its prudence in managing its cash flow, will have to weigh the risks and opportunities that Bitcoin offers. If the board of directors remains skeptical, this vote could nevertheless send a strong signal to the market: crypto is now an asset taken seriously, even by the largest companies in the world. All that remains is to wait and see whether shareholders will decide to take a step towards the digital future or stay the course on more traditional investments.
Luc Jose A.
A graduate of Sciences Po Toulouse and holder of a blockchain consultant certification issued by Alyra, I joined the Cointribune adventure in 2019. Convinced of the potential of blockchain to transform many sectors of the economy, I took the commitment to raise awareness and inform the general public about this constantly evolving ecosystem. My goal is to enable everyone to better understand blockchain and seize the opportunities it offers. I strive every day to provide an objective analysis of current events, to decipher market trends, to relay the latest technological innovations and to put into perspective the economic and societal issues of this ongoing revolution.
