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Microsoft (NYSE: MSFT) shareholders began voting on a significant proposal on Wednesday, October 30, considering whether the tech giant should invest in Bitcoin as part of its treasury strategy. The board has recommended against the proposal, suggesting that it could disrupt the company’s carefully balanced investment strategy.
Nevertheless, Bitcoin advocates within the company see it as an opportunity to follow in the footsteps of MicroStrategy. The MSTR stock recently hit a 25-year stock high, partly attributed to its substantial BTC holdings, which has also influenced MSFT shareholders to an extent. The Microsoft stock gained significantly in the market trading session today as the voting began.
About Microsoft’s Bitcoin Treasury Proposal
Microsoft clarified its stance through an official statement, noting that the corporation’s Global Treasury and Investment Services team already “evaluates diverse assets, including cryptocurrencies, to ensure both diversification and inflation protection.” The company emphasized that a Bitcoin-specific focus is unnecessary because “Microsoft’s management already carefully considers this topic.”
Additionally, the statement highlighted that “volatility is a factor to consider in evaluating cryptocurrency investments for corporate treasury applications that require stable and predictable investments.” The proposal’s supporters argue that Bitcoin offers a valuable hedge against inflation, pointing out that U.S. inflation averaged 5.03% over the last four years. To keep pace, corporate assets must appreciate significantly, simply “to break even,” according to the proposal.
Note: @Microsoft $MSFT shareholders have started voting today including on whether the corporation should invest in #Bitcoin pic.twitter.com/WQUXLQxLwu
— MartyParty (@martypartymusic) October 30, 2024
Proponents also cited Bitcoin’s 99.7% price increase from last year as evidence of its strength as a store of value. With MicroStrategy’s (MSTR) stock recently reaching $267.89, Bitcoin supporters see a strong case for Microsoft to follow suit.
Yet, Microsoft’s board appears firm in its opposition, and some major shareholders could sway the outcome. Vanguard, an influential investor known for its anti-crypto stance, holds around 9% of Microsoft stock, adding a potential barrier to Bitcoin integration in Microsoft’s strategy.
MSFT Stock Gains
Despite the mixed outlook, the market has responded positively to the news of the shareholder vote, with MicroStrategy stock gaining over 1% today. Market observers eagerly await the final results, as Microsoft’s decision could impact both corporate investment trends in BTC and the tech industry’s broader stance on crypto integration.
At press time, the MSFT stock gained 1.21% and traded at $437.17 in Wednesday’s trading session. The stock is now nearing its 52-week high at $468.35. Also, today, the company is scheduled to post its third-quarter earnings report for the current fiscal year. In case of a strong earnings report, the stock could surge further in the after hours and vice versa.