Microsoft shareholders will cast their votes on December 10th to determine whether the tech giant should publicly consider including Bitcoin on its balance sheet, according to a filing with the U.S. Securities and Exchange Commission. Titled “Assessment of Bitcoin as an Investment, the idea was put forward by the conservative think tank National Centre for Public Policy Research.
Microsoft’s board of directors is advising shareholders to vote against the motion in spite of this backing, claiming that the business already “carefully considers this topic.” This position is in line with that of Microsoft co-founder Bill Gates, who has previously been outspoken in his criticism of cryptocurrencies, citing concerns about their speculative nature in particular.
The December 10 vote will have a big impact on the bitcoin market as a whole as well as Microsoft. A positive result might emphasise Bitcoin’s increasing recognition as a respectable investment and further establish its status as a desirable asset for conventional businesses and financial institutions.
However, rejecting the request would indicate that Microsoft is hesitant to follow in the footsteps of other big companies that have previously made large investments in Bitcoin, such as MicroStrategy (MSTR) and Tesla (TSLA). With 252,220 coins worth over $17 billion, or more than 1% of the whole Bitcoin supply, MicroStrategy currently owns the largest corporate Bitcoin portfolio.
More specialised forms of participation, such investing in businesses like Argo or Northern Data, abruptly lose their attraction as a market gains popularity, as seen with the rise of respectable investment vehicles like the iShares Bitcoin Trust or the Invesco Galaxy Bitcoin ETF.
One obvious indication that interest has diminished is the fact that many cryptocurrency companies have fewer Wall Street analysts covering their stock. There won’t be anybody purchasing your stock if no one is covering it.
Mining businesses may be able to dust up their PowerPoint presentations in the autumn and persuade investors that locating pools of inexpensive electricity is still a profitable venture if they can weather the sweltering summer months and high energy expenses.
ETFs or businesses that have succeeded in gaining a more respectable standing are currently your best options as an investor. Among these is Coinbase, which has guaranteed Wall Street that it runs a reliable software technology company that facilitates Bitcoin trading. Coinbase’s stock has risen 36% so far this year, making it a remarkable accomplishment in an otherwise difficult industry.
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