Microsoft to hold BTC on its balance sheet?
The proposal notes a corporation’s “fiduciary duty” to maximize shareholder value by protecting profits from debasement in an inflationary world
HJBC/Shutterstock modified by Blockworks
This is a segment from the Forward Guidance newsletter. To read full editions, subscribe.
We already know MicroStrategy loves bitcoin. How about Microsoft?
To catch you up, a Thursday filing showed a proposal the National Center for Public Policy Research intends to submit for consideration at Microsoft’s annual meeting.
It notes a corporation’s “fiduciary duty” to maximize shareholder value by protecting profits from debasement in an inflationary world. The proposal calls on Microsoft — with $484 billion in assets, as of March 31 — to consider diversifying its balance sheet with assets beyond the US government securities and corporate bonds it currently holds. Namely, bitcoin.
BTC’s volatility is acknowledged. Still, the proposal notes “companies should evaluate the benefits of holding some, even just 1%, of its assets in bitcoin.”
The proposal shouts out the similarly named MicroStrategy, which held 252,220 BTC as of last month. MicroStrategy’s stock is up 249% this year, while Microsoft’s is up 16%.
MicroStrategy founder Michael Saylor also had a message for Microsoft CEO Satya Nadella:
It doesn’t appear this proposal will pass.
In a statement of opposition, Microsoft’s Board of Directors said that “volatility is a factor to consider in evaluating cryptocurrency investments for corporate treasury applications that require stable and predictable investments to ensure liquidity and operational funding.”
The company already has “strong and appropriate processes in place” for its corporate treasury, the board adds — noting: “This requested public assessment is unwarranted.”
Perhaps the takeaway, though, is that the board notes it has evaluated bitcoin and other cryptocurrencies in the past, and that Microsoft “continues to monitor trends and developments related to cryptocurrencies to inform future decision-making.”
So the company’s not closing the door on BTC altogether. I’d say we can add that to the list of positive developments made during a year in which the asset has gone more mainstream.
Get the news in your inbox. Explore Blockworks newsletters:
- Blockworks Daily: Unpacking crypto and the markets.
- Empire: Crypto news and analysis to start your day.
- Forward Guidance: The intersection of crypto, macro and policy.
- 0xResearch: Alpha directly in your inbox.
- Lightspeed: All things Solana.
- The Drop: Apps, games, memes and more.
- Supply Shock: Bitcoin, bitcoin, bitcoin.
