Microsoft shareholders are set to vote today on whether the tech giant should consider investing in Bitcoin. The proposal, titled "Assessment of Investing in Bitcoin," will be put to a vote during the company's annual shareholder meeting on December 10, 2024, at 11:30 AM New York time.

This vote comes at a time when Bitcoin has recently surpassed the long awaited $100,000 mark. The surge was proudly sponsored—in part—by President-elect Donald Trump's pro-crypto stance and the nomination of crypto advocate Paul Atkins to lead the SEC. 

The cryptocurrency reached this milestone on December 5, 2024, touching a record high of $103,679. Though, it has been dwindling between $100K and $90K since then.

The proposal was submitted by the National Center for Public Policy Research, a conservative think tank that describes Bitcoin as "an excellent hedge against inflation" and save the company’s piggybank from potentially shrinking. They're calling on Microsoft to consider adding Bitcoin to its balance sheet, suggesting that the company should hold at least 1% of its assets in the cryptocurrency.

However, Microsoft's board of directors has recommended voting against the measure. They argue that the company already evaluates a broad range of assets, including Bitcoin, as part of its existing investment strategy. "The company carefully considers this topic as part of our broader financial framework," the board noted in a filing with the U.S. Securities and Exchange Commission (SEC).

This stance aligns with the views of Microsoft co-founder Bill Gates, who has consistently expressed skepticism about cryptocurrencies, often citing their speculative nature. Gates has been vocal about his criticism, referring to the digital asset trend in 2022 as being "100% based on greater fool theory."

The timing of this vote is noteworthy, given the recent surge in Bitcoin's value and increased institutional adoption. Major corporations and financial institutions are increasingly viewing Bitcoin as a viable asset class. For instance, MicroStrategy, currently the largest corporate Bitcoin holder, recently acquired an additional 21,550 bitcoins for approximately $2.1 billion, bringing its total holdings to over 423,000 BTC.

To top it off, Michael Saylor, the co-founder and executive chairman of MicroStrategy, recently made a bold pitch to Microsoft's board of directors regarding Bitcoin investment. In a three-minute presentation, Saylor proposed that Microsoft could potentially add up to $5 trillion to its market capitalization by adopting Bitcoin as part of its treasury strategy.

Saylor's pitch to Microsoft emphasized several key points:

  1. He described Bitcoin as the "greatest digital transformation" of the century.
  2. He argued that Bitcoin could serve as a hedge against traditional financial risks.
  3. Saylor suggested that Microsoft invest $100 billion annually into buying Bitcoin.
  4. He projected that Bitcoin could reach a valuation of $1.7 million per coin by 2034

Now let's put this into perspective. Microsoft's total assets amount to $523 billion. If they decided to allocate just 1% of their balance sheet to Bitcoin, it would be like dropping a boulder in a pond - the ripples would be felt across the entire crypto market. It could potentially push Bitcoin's price even higher, maybe even beyond the $150,000 mark.

It's worth noting that while the proposal is being put to a vote, the likelihood of it passing seems low. The betting site Polymarket suggests only an 11% likelihood of shareholder approval for Microsoft's Bitcoin evaluation.

Microsoft Looks To Make Decision On Investing In Bitcoin | HODL FM
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