Microsoft Corp (MSFT) has reportedly initiated a shareholder vote concerning a proposal for investing in Bitcoin (BTC). This move aims to gauge shareholder sentiment on potentially directing funds towards Bitcoin investments.
What Are the Voting Options Available?
In this voting process, shareholders can select from three choices: “I Support,” “I Do Not Support,” and “I Abstain.” Notably, the board of directors has recommended shareholders opt for “I Do Not Support.”
Why Is This Proposal Significant for Microsoft?
Recently, Microsoft submitted a filing to the U.S. Securities and Exchange Commission (SEC) that introduced “Bitcoin Investment Evaluation” as a topic for discussion at the annual shareholder meeting set for December 10. This marks a critical moment for the tech giant as it explores asset diversification through Bitcoin.
Microsoft’s second-quarter revenue report for 2024 revealed that the company possesses $76 billion in cash reserves. If shareholders advocate for at least a 10% investment in Bitcoin, this could mean a potential investment of $7.6 billion. However, the proposal merely suggests assessing Bitcoin for diversification, leaving the exact investment figure open-ended.
- Bitcoin is currently priced at $71,745, with a hypothetical average purchase price of $73,000 allowing the company to acquire about 104,109 BTC.
- This potential holding would exceed Tesla’s current Bitcoin stash by over eleven times.
- Still, it would be less than MicroStrategy’s substantial reserve of 252,220 BTC.
- Acquiring a significant amount of Bitcoin could trigger supply shocks, given that over 80% of Bitcoin supply has remained stable for six months.
The outcome of this vote remains to be seen, as the ultimate decision rests with the shareholders. The crypto community watches closely for Microsoft’s final stance on this investment opportunity.