Microsoft Board says no to Bitcoin: What’s behind the decision?

  • Microsoft board advises against Bitcoin investment proposal, citing prior evaluations and ongoing monitoring.
  • Institutional Bitcoin holdings grow, with MicroStrategy and Bitcoin ETFs among top corporate holders.

As a seasoned analyst with over two decades of experience under my belt, I have witnessed the evolution of various market trends and technological advancements. In this particular scenario, I find myself intrigued by Microsoft’s stance on Bitcoin investments.


As a researcher, I am eagerly anticipating Microsoft’s shareholder meeting scheduled for the 10th of December. One intriguing item on the agenda is a proposal suggesting that the company delve into Bitcoin [BTC] investments. This potential move has garnered considerable interest in the tech and financial spheres alike.

Microsoft’s Bitcoin board meeting

As per a recent disclosure made to the U.S. Securities and Exchange Commission (SEC), Microsoft’s board and stakeholders are set to discuss critical matters at an upcoming gathering. Among these topics is a proposal to incorporate Bitcoin as a means of protecting against inflation and economic fluctuations.

As an analyst, I’ve noted that Microsoft’s board of directors recommends voting against this particular proposal. They have stated in the filing that the company has already thoroughly evaluated strategies like this one and made their decisions accordingly.

According to a company declaration expressing their viewpoint, Microsoft strongly expressed their disapproval towards the idea of investing in Bitcoin.

In previous assessments, Bitcoin and other digital currencies were part of the options under consideration. Microsoft remains vigilant about cryptocurrency trends and advancements, keeping an eye on them as they influence future choices.

What’s more to it?

The NCPPR’s proposal highlights that MicroStrategy’s strategy for investing in Bitcoin exceeded Microsoft’s stock growth by more than 300% during the previous year, even though MicroStrategy operates on a smaller scale.

Additionally, the NCPPR pointed out the rising fascination among institutions and corporations towards Bitcoin. This is evident in their investment strategies, such as Bitcoin Spot Exchange-Traded Funds (ETFs). They further suggested that while Bitcoin exhibits volatility, it might serve as a prospective safeguard against inflation and decreasing corporate bond returns.

At a bare minimum, it’s advisable for companies to assess the potential advantages of investing a small portion, around 1%, of their total assets into Bitcoin.

Bitcoin’s top holders and their growing influence

Institutional ownership of Bitcoin has seen significant expansion, as major players such as Satoshi Nakamoto, Binance, BlackRock, Grayscale, and MicroStrategy consistently add to their holdings of the premier digital currency.

As a result, the competition to acquire Bitcoin has significantly escalated, approaching the amount held by Satoshi Nakamoto, according to comments made by Eric Balchunas, an ETF analyst at Bloomberg.

As an analyst, I’ve noticed that MicroStrategy’s bold approach to Bitcoin acquisition has sparked inspiration in entities like Japan’s Metaplanet. In response, they’ve mobilized a fresh stock issuance worth approximately 10 billion Yen, which is part of their ongoing 11th series of Stock Acquisition Rights.

As an analyst, I’ve found that Tesla’s Q3 report highlights its position as one of the top four Bitcoin holders amongst American publicly traded companies, with MicroStrategy, Marathon Digital Holdings, and Riot Blockchain holding more Bitcoin than Tesla in their respective portfolios.

Furthermore, with its 8,285 Bitcoins, valued approximately at half a billion dollars ($560 million), SpaceX secures a place among the top seven largest private Bitcoin holders.

Impact on BTC and MSFT

On the 25th of October, Bitcoin was being traded at approximately $67,576.65. This price represented a 1.02% rise compared to the previous 24-hour period, as reported by CoinMarketCap.

Instead, Microsoft (MSFT) stocks exhibited only a small change, ending at $424.7 on October 24th, showing a minor increase of 0.03% according to Google Finance.

By the 25th of October, MSFT shares had inched up further to $424.73, marking a modest 0.13% rise. 

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2024-10-25 19:04