Microsoft Board says no to Bitcoin: What’s behind the decision?

• Microsoft board advises against Bitcoin investment proposal, citing prior evaluations and ongoing monitoring.
• Institutional Bitcoin holdings grow, with MicroStrategy and Bitcoin ETFs among top corporate holders.

Microsoft’s upcoming shareholder meeting on the 10th of December is set to capture significant attention. A notable proposal for the tech giant to explore Bitcoin [BTC] investments will be a part of the meeting’s agenda.

Microsoft’s Bitcoin board meeting

According to a recent filing with the U.S. Securities and Exchange Commission (SEC), Microsoft’s board and shareholders will address several key issues at the meeting. These include the suggestion to adopt BTC as a hedge against inflation and broader economic shifts.

However, Microsoft’s board has advised a vote against this proposal, stating that the company has already given careful consideration to such strategies, according to the filing.

As outlined in a company statement opposing the proposal, Microsoft emphasized its stance against Bitcoin investment.

“Past evaluations have included Bitcoin and other cryptocurrencies among the options considered, and Microsoft continues to monitor trends and developments related to cryptocurrencies to inform future decision making.” 

What’s more to it?

This proposal, initiated by the National Center for Public Policy Research (NCPPR), pointed to MicroStrategy’s notable Bitcoin investment approach, which it claims has outperformed Microsoft’s stock by over 300% in the past year despite the smaller scale of MicroStrategy’s operations.

The NCPPR also highlighted the growing trend of institutional and corporate interest in BTC. This included through spot Bitcoin ETFs, and argued that, although Bitcoin remains volatile, it could act as a potential hedge against inflation and declining corporate bond yields.

”At minimum, companies should evaluate the benefits of holding some, even just 1% of its assets in Bitcoin.” 

Bitcoin’s top holders and their growing influence

BTC institutional holdings has grown remarkably, with top players like Satoshi Nakamoto, Binance, BlackRock, Grayscale, and MicroStrategy all steadily increasing their stakes in the leading cryptocurrency.

Hence, the race to secure Bitcoin has intensified to the point where BTC ETFs are nearing the total holdings attributed to Nakamoto, as highlighted by Bloomberg ETF analyst Eric Balchunas.

In fact, MicroStrategy’s prominent Bitcoin acquisition strategy has further inspired entities such as Japan’s Metaplanet. The organization recently raised 10 billion Yen through a fresh stock issuance as part of its 11th series of Stock Acquisition Rights.

Tesla’s Q3 report also underscored its role as the fourth-largest BTC holder among U.S.-listed firms, trailing MicroStrategy, Marathon Digital Holdings, and Riot Platforms.

Moreover, SpaceX’s 8,285 BTC—valued at roughly $560 million—cements its position as the seventh-largest private Bitcoin holder.

Impact on BTC and MSFT

As of the 25th of October, BTC was trading at $67,576.65, showing a 1.02% increase over the past 24 hours, according to CoinMarketCap.

In contrast, Microsoft (MSFT) shares saw minimal movement, closing at $424.7 on the 24th of October with a slight uptick of 0.03%, per Google Finance.

By the 25th of October, MSFT shares had inched up further to $424.73, marking a modest 0.13% rise.