Microsoft Considers Bitcoin Investment

Microsoft is reportedly contemplating an investment in bitcoin, as indicated by a U.S. Securities and Exchange Commission (SEC) filing submitted on Thursday. The topic has been included as a "voting item" in its upcoming shareholder meeting scheduled for December 10.

The proposal titled "Assessment in Investing in Bitcoin" seems to have been suggested by The National Center for Public Policy Research, a conservative think tank. This organization is part of the advisory board for Project 2025, which promotes a highly conservative policy agenda.

The proposal includes a recommendation from the board to vote AGAINST it. In the SEC filing, Microsoft reported that the board considers the proposal "unnecessary" since management already takes this matter into account.

Microsoft explained, "Our Global Treasury and Investment Services team evaluates a wide range of investable assets to fund Microsoft’s ongoing operations, including those expected to provide diversification and inflation protection while mitigating significant economic loss risks from rising interest rates." The company added that it has previously evaluated Bitcoin and other cryptocurrencies and continues monitoring trends to inform future decisions.

Furthermore, Microsoft acknowledged that volatility is a critical factor in assessing cryptocurrency investments and that it has established processes for managing and diversifying its corporate treasury.

As the third-largest tech company in the U.S. with a market cap of $3.157 trillion, if the proposal passes, Microsoft would become the largest publicly-traded crypto investor, surpassing MicroStrategy and Tesla.

Under securities law, eligible stockholders can propose items for a vote at shareholders' meetings regarding changes in corporate operations or policies. The ultimate decision is made by a majority of shareholders, not the board.

Currently, Bitcoin is trading at $68,526.52, reflecting a 3.04% increase in the last 24 hours, according to The Block Prices.

The Block has contacted Microsoft for further comment.