Microsoft: Another Public Company Eyeing Bitcoin

Microsoft investors will vote on December 10 to decide whether the company should invest in Bitcoin, potentially joining other major public companies in the U.S. that have acquired significant amounts of the cryptocurrency.

On October 25, the company submitted a proposal to the U.S. Securities and Exchange Commission (SEC) that would allow shareholders to consider a possible investment in Bitcoin at the upcoming meeting. This initiative is backed by the National Center for Public Policy Research (NCPPR), which has emphasized that “at a minimum, companies should evaluate the benefits of holding a portion—perhaps just 1%—of their assets in Bitcoin.”

The NCPPR argues that, despite its volatility, Bitcoin could serve as a hedge against inflation and provide alternative returns compared to corporate bond yields. Currently, Microsoft is the third most valuable tech company, with a market capitalization of $3.18 trillion, trailing only NVIDIA at $3.44 trillion and Apple at $3.56 trillion.

Among Wall Street’s mega-corporations, Tesla invested $1.5 billion in Bitcoin in February 2021, when prices were around $36,000. However, CEO Elon Musk sold 4,320 Bitcoins a month later and 29,160 in 2022. By the summer of that year, Tesla had sold most of its holdings at around $20,000 each—significantly lower than its initial investment.

Additionally, investment bank Morgan Stanley reported in the second quarter of this year that it holds over 5.5 million shares of the iShares Bitcoin Trust (IBIT), valued at $188 million.

As Microsoft considers this proposal, the decision could reflect broader trends in corporate investment strategies regarding cryptocurrencies and asset diversification.