Microsoft shareholders are set to decide on the firm’s Bitcoin investment stance on December 10. The digital asset’s cruise to $100k has been fueled by support from the United States President-elect Donald Trump and Tesla CEO and billionaire Elon Musk. However, Microsoft has yet to commit.
The deadline for the decision will come later this week as stakeholders take a vote in a Tuesday meeting to decide. According to its filing with the Securities and Exchange Commission (SEC), Microsoft stakeholders will determine if it will add Bitcoin to its balance sheet.
However, the board members are against the proposal, noting that the firm already has several assets it can invest in as part of its broader strategy, which includes Bitcoin. The final decision will be available after the meeting.
Microsoft’s board did not commit to the Bitcoin investment proposal
Microsoft’s Bitcoin proposal, “Assessment of Investing in Bitcoin,” was submitted to the National Center for Public Policy Research, a think tank that advocates for Bitcoin. According to the think tank, Bitcoin is the best hedge for individuals and entities against inflation.
Despite the think tank’s endorsement, the company’s board of directors is not in line with adding the digital asset to its portfolio. According to them, the topic is a delicate one that is being carefully considered.
The director’s decision echoes Microsoft’s co-founder Bill Gates, a vocal advocate against the asset. He is in league with those who think it is a speculative asset, highlighting its lack of intrinsic value. However, the upcoming vote represents a fighting chance for the wider crypto market. A positive verdict could further enhance Bitcoin’s reputation as an asset that appeals to individuals and traditional corporations. It will also underscore its growing role as a financial instrument among institutions.
An important decision for the firm
If Microsoft decides to reject the proposal, it could be making a public stance against the digital asset whose popularity and price are at all-time high levels. It would be choosing not to follow in the footsteps of Microstrategy and other companies that have dipped their feet in the Bitcoin water. Microstrategy currently holds the largest Bitcoin cache of any corporation, totaling about 402,000 BTC. The cache is valued at $40 billion, representing about 2% of the asset’s total supply.
The Bitcoin topic has been a touchy subject over the last few years. While individuals and entities continue to champion the asset’s cause, others may never be convinced.
For instance, one of Bitcoin’s biggest critics, Peter Schiff has always warned about the dangers of dabbling in the asset. Schiff shares in the sentiment of most people about the speculative nature of the asset, begging the financial market to consider other alternatives.
While there are critics like Schiff, there are people who believe in the asset like Rich Dad Poor Dad author Robert Kiyosaki. Kiyosaki has been singing Bitcoin’s praises over the last few years, making outrageous predictions to show his full faith in the asset. While he concedes that traders should add Bitcoin to precious metals gold and silver, he has tipped Bitcoin to outperform them.
Bitcoin recently hit $100k, repaying the faith that people like Kiyosaki have in the asset. On the other hand, Schiff caught heat for his past negative predictions about BTC never hitting the $100k milestone.
Whales like Microstrategy and El Salvador have also publicly showcased their exponential gains from Bitcoin. El Salvador president Nayyib Bukele recently shared his country’s unrealized Bitcoin profits on X. Microstrategy has continued to pump more money toward purchasing Bitcoin regardless of its profit over the years to the dismay of critics.Â
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