This December, Microsoft shareholders are set to vote on whether the company should diversify part of its assets into Bitcoin, an idea championed by the National Center for Public Policy Research (NCPPR).
While the board opposes the proposal, arguing it could disrupt Microsoft’s stable investment approach, NCPPR highlights Bitcoin’s inflation-resistant qualities and suggests that corporations allocate at least 1% of their assets to cryptocurrency.
The proposal underscores Bitcoin’s impressive performance, noting that it gained nearly 100% in a single year—far outpacing corporate bonds. NCPPR points to MicroStrategy as an example, whose stock surged 313% compared to Microsoft’s, largely due to its significant Bitcoin holdings.
Currently, Microsoft holds about $484 billion, mostly invested in government and corporate bonds that barely outpace inflation. While the board has previously reviewed Bitcoin as an option, it continues to favor traditional investments that offer consistent returns, concerned that cryptocurrency’s volatility could impact Microsoft’s operational cash flow.
This vote reflects a broader shift in traditional finance, where large institutions like BlackRock have begun offering Bitcoin ETFs. NCPPR argues that Bitcoin has proven to be a powerful inflation hedge, outperforming corporate bonds with a 414% gain over five years.
The upcoming vote, scheduled for December 10, could set a new precedent for how large companies like Microsoft approach crypto investments. NCPPR contends that corporations must look beyond conventional assets, even if these newer options come with more price volatility.
In a fresh move to bolster its Bitcoin war chest, Strategy is rolling out a new fundraising vehicle—Stride preferred shares—targeting up to $1 billion in capital.
Metaplanet is aggressively expanding its Bitcoin holdings through an unconventional $5.4 billion capital raise, positioning itself as a leading BTC proxy in Asia.
BlueBird Mining Ventures, a London-listed firm traditionally focused on gold, is making headlines after announcing it will liquidate its gold reserves and begin accumulating Bitcoin as a treasury asset.
Bitcoin tumbled sharply today, shedding more than 3.5% in a matter of hours and briefly flirting with the critical $100,000 level.