Microsoft urges shareholders to vote against Bitcoin investment
Microsoft is set to hold its annual shareholders meeting on December 9, where a key item on the agenda is a proposal titled "Assessment of investing in Bitcoin."
According to a recent filing by the Securities and Exchange Commission (SEC), the company’s board has recommended that shareholders vote against the proposal.
While it remains unclear if this proposal specifically addresses adding Bitcoin (CRYPTO:BTC) to Microsoft's balance sheet, the filing notes, "Microsoft's management already carefully considers this topic."
The decision is noteworthy, given that Microsoft, one of the world’s largest software companies, currently accepts Bitcoin for purchases at its Windows and Xbox stores.
Microsoft's approach to Bitcoin has been cautious.
Despite launching its open-source decentralised identifiers (DIDs) network called ION on Bitcoin’s blockchain, the company’s board is urging shareholders to reject direct investment in the cryptocurrency.
ION enables users to create decentralised digital credentials, such as diplomas or licenses, that provide full control over their data.
If shareholders decide to approve the investment proposal, Microsoft would join the small list of U.S. companies holding Bitcoin in their reserves.
MicroStrategy, a business analytics firm, became a notable corporate investor in Bitcoin back in 2020.
The company currently holds 252,220 Bitcoin, worth approximately $17 billion.
Its stock has seen a significant increase this year, driven by rising Bitcoin prices.
According to market analysts, although some firms like MicroStrategy have benefitted from early Bitcoin investments, the approach remains controversial among other major tech companies.
The outcome of Microsoft's shareholder vote could indicate broader sentiments within the tech industry regarding cryptocurrency investments and their role in corporate strategies.
At the time of reporting, the Bitcoin price was $67,954.42.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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