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Microsoft (MSFT+0.84%) will soon determine whether to invest in Bitcoin, although the board has recommended voting against the proposal, citing that the company already considers a wide range of investable assets, including Bitcoin.
On December 10, shareholders of the tech giant will vote on whether Microsoft should publicly assess adding Bitcoin to its balance sheet, according to a filing with the U.S. Securities and Exchange Commission.
The proposal, titled “Assessment of Investing in Bitcoin,” was submitted by the National Center for Public Policy Research, a conservative think tank that advocates for Bitcoin as an “excellent, if not the best, hedge against inflation.”
Despite this endorsement, Microsoft’s board of directors is recommending that shareholders vote against the proposal, stating that the company already “carefully considers this topic.” This stance aligns with the views of Microsoft co-founder Bill Gates, who has been vocal in his criticism of cryptocurrencies in the past, particularly highlighting concerns about their speculative nature.
The upcoming vote, scheduled for December 10, is poised to be significant not only for Microsoft but also for the broader cryptocurrency market. A favorable outcome could further solidify Bitcoin’s status as an appealing asset for traditional corporations and financial institutions, underscoring its growing acceptance as a legitimate investment.
On the other hand, a decision to reject the proposal would signal that Microsoft remains hesitant to follow the lead of other tech firms, such as MicroStrategy (MSTR+0.49%) and Tesla (TSLA+2.55%), which have already made substantial investments in Bitcoin. Currently, MicroStrategy holds the largest corporate Bitcoin portfolio, with 252,220 coins valued at approximately $17 billion, representing over 1% of the total Bitcoin supply.