Microsoft’s board of directors has advised voting against a proposal introduced by a conservative think tank advocating for the company to evaluate potential investments in bitcoin.
With $523 billion in total assets, Microsoft ranks as the third most valuable company in the world. A decision to allocate even 1% of its balance sheet to bitcoin could significantly increase demand for the cryptocurrency, potentially driving its price beyond $100,000.
The National Center for Public Policy Research (NCPPR), a conservative organization, submitted the proposal not to prompt immediate bitcoin purchases but to encourage Microsoft’s board to assess whether investing in bitcoin aligns with the long-term interests of its shareholders.
The NCPPR argues that during periods of high inflation, corporations should prioritize protecting their assets from depreciation while generating revenue. The group claims the actual inflation rate in the U.S. may have exceeded the reported average of 5% over the past four years. Criticizing Microsoft’s reliance on government and corporate bonds, the think tank promotes bitcoin as a viable, albeit volatile, hedge against inflation. Their proposal calls for Microsoft to consider allocating at least 1% of its balance sheet to bitcoin.
Microsoft’s leadership has dismissed the proposal, asserting that the topic has already been thoroughly reviewed. The board emphasized the importance of maintaining stable and predictable investments to ensure liquidity and meet operational needs.
Despite rejecting the proposal, the discussion around it reflects a growing interest in bitcoin within corporate finance circles.
Following the NCPPR’s proposal, Michael Saylor, Executive Chairman of MicroStrategy, offered to meet with Microsoft’s CEO, Satya Nadella, to discuss bitcoin adoption. MicroStrategy, which adopted bitcoin as its primary reserve asset in 2020, currently holds over 402,000 bitcoins and plans to invest an additional $42 billion in the cryptocurrency over the next three years.
Although Nadella declined the meeting, Saylor presented a brief pitch to Microsoft’s board, outlining the political and economic advantages of bitcoin adoption. Over the course of a three-minute presentation supported by 44 slides, Saylor highlighted growing political support for bitcoin, citing initiatives like the Bitcoin Strategic Reserves Act, led by Senator Cynthia Lummis, and favorable cryptocurrency policies endorsed by Donald Trump.
Saylor also proposed various bitcoin adoption scenarios, including an aggressive strategy that could potentially add $4.9 trillion to Microsoft’s market capitalization.
While Microsoft is unlikely to act on the proposal, the dialogue signifies a broader shift in attitudes toward bitcoin. Once dismissed as “internet money,” bitcoin is increasingly recognized as a legitimate financial tool within the strategic playbooks of major global corporations.
The ongoing debate underscores the cryptocurrency’s growing relevance in corporate finance, as companies grapple with balancing traditional investment strategies against the potential benefits and risks of emerging digital assets.