Microsoft Corp. MSFT, boasting a market capitalization exceeding $3 trillion, announced its intent to support a vote for an evaluation of investing in Bitcoin BTC/USD during the shareholders meeting scheduled for December.
What transpired: In a filing with the SEC on Thursday, the tech behemoth included a proposal titled “Assessment of Investing in Bitcoin” for a vote at the annual meeting on December 10.
The filing indicated that the Board recommends opposing this initiative.
Shareholders urged the board to perform the assessment, highlighting Bitcoin’s significant growth—an increase of nearly 100% over the past year and 414% over the last five years.
The proposal referenced MicroStrategy Inc. MSTR, a tech firm that holds a substantial amount of Bitcoin and has seen its shares outperform Microsoft’s in 2024. While Microsoft’s stock has risen by 14.52% so far in 2024, MicroStrategy’s shares have skyrocketed by an impressive 244%.
Moreover, it was noted that Microsoft’s second-largest shareholder, BlackRock, is the operator of the iShares Bitcoin Trust ETF IBIT, the leading investment fund focused on Bitcoin.
The shareholders described Bitcoin as an “excellent,” if not the premier, hedge against inflation.
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In response, the Board deemed the vote “unnecessary,” stating that the company has already assessed the matter.
“Previous evaluations have considered Bitcoin and other cryptocurrencies as part of the options being reviewed, and Microsoft will continue to analyze trends and evolutions pertaining to cryptocurrencies to guide future decisions,” the company’s statement elaborated.
Why It Matters: As the third-most valuable company globally, even a careful examination, as noted previously, signals a rising institutional interest in the largest cryptocurrency in the market.
This year alone, a total of 11 spot exchange-traded funds linked to the price of Bitcoin were launched in the U.S., marking a significant milestone for the mainstream acceptance of the leading cryptocurrency.
Price Action: At the time of this report, Bitcoin was trading at $68,115.43, reflecting a 1.22% increase in the last 24 hours, according to data from Benzinga Pro. Microsoft shares closed slightly up at $424.73 during Thursday’s regular trading session.
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