Microsoft Is Still Not Ready For Bitcoin. All Eyes Are On Crucial December Vote

Microsoft has made a firm stance to say NO to Bitcoin, stating that this aligns better with the company's long term interest.

As the Microsoft shareholders prepare to throw in their vote in December to decide whether the company should publically consider adding bitcoin to its balance sheet, Microsoft is urging its shareholders to think about the impact that Bitcoin could have on the STABILITY on the company.

Assessment of investing in Bitcoin proposal

The Assessment of investing in Bitcoin proposal was first introduced by the National Center for Public Policy Research (NPPR), which proposed that Microsoft could follow in the footsteps of Mircrostrategy, a Bitcoin development company who managed to boost its company's performance by over 300% this year through its Bitcoin investment.

They also noted that Microstrategy managed to achieve this success despite engaging in significantly less business activity than Microsoft.

"And they're not alone. The institutional and corporate adoption of Bitcoin is becoming more commonplace," it added. Microsoft's second largest shareholder, BlackRock for example, offers its clients a Bitcoin ETF."

NPPR argues that despite its volatility, Bitcoin is able to fight against inflation and corporate bond yields. Hence, it suggests that Microsoft could consider holding a small percentage of its assets in Bitcoin.

Microsoft giving the proposal a hard no!

But Microsoft has decided to give this proposal a hard no!

Microsoft says that for years, the company has continuously monitored trends and developments regarding cryptocurrencies and according to the insights they have gathered, the company would recommend its stakeholders to vote against the proposal.

Microsoft's major shareholders-including Vanguard, BlackRock, and State Street-must consider cryptocurrency's volatility, the company said. This factor is crucial when evaluating investments for corporate treasuries. These terasuries rely on stability and predictability to maintain liquidity and support operations.

Microsoft has strong and appropriate processes in place to manage and diversify its corporate treasury for the long-term benefit of shareholders and this requested public assessment is unwarranted," it further said.

While Microsoft accepted Bitcoin payments for its Xbox store between 2014 to 2018, the company in recent years had shifted more of its focus towards artificial intelligence and away from blockchain technology.

The upcoming December 10 annual meeting will provide further insight into shareholders’ views on balancing traditional stability with emerging digital asset adoption.