Microsoft Wants Shareholders to Say No to Bitcoin Investment Plan

Microsoft is urging shareholders to reject a think tank’s proposal to invest in Bitcoin, stating it aligns better with their long-term interests.

The US tech giant stated in a filing Thursday that this evaluation is unnecessary, as their management “already carefully considers this topic.”

“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,” the company said.

More: In additional materials filed today, Microsoft's board explains why it recommends a vote against this proposal: Because it's "unnecessary" since "Microsoft’s management already carefully considers this topic."

Microsoft’s Global Treasury and Investment Services team… https://t.co/6d8iSvHuuB

— MacroScope (@MacroScope17) October 24, 2024

Microsoft Highlights Need for Stability as Shareholders Weigh Crypto Volatility in Treasury Decisions

Microsoft’s major shareholders—including Vanguard, BlackRock, and State Street—must consider cryptocurrency’s volatility, the company said. This factor is crucial when evaluating investments for corporate treasuries. These treasuries rely on stability and predictability to maintain liquidity and support operations.

“Microsoft has strong and appropriate processes in place to manage and diversify its corporate treasury for the long-term benefit of shareholders and this requested public assessment is unwarranted,” it further said.

Think Tank Cites MicroStrategy’s Stock Jump, Proposes Microsoft Add Bitcoin to Treasury

The National Center for Public Policy Research informed Microsoft of its plan to present a Bitcoin diversification proposal. This proposal will be introduced at the upcoming annual meeting on Dec. 10.

The Center highlighted MicroStrategy as an example, noting that its Bitcoin investment strategy boosted its stock performance by 300% over the tech giant’s this year. This gain occurred despite MicroStrategy engaging in significantly less business activity than Microsoft.

“And they’re not alone. The institutional and corporate adoption of Bitcoin is becoming more commonplace,” it added. “Microsoft’s second largest shareholder, BlackRock, offers its clients a Bitcoin ETF.”

The think tank suggested companies consider investing at least 1% of assets in Bitcoin.

Earlier this year, Microsoft invested $1.5b in UAE-based AI company G42 to expand its AI presence.