Microsoft shareholders will vote on a proposal to require the tech conglomerate to allocate assets to Bit.
Microsoft may be pressured by shareholders to "consider investing in Bit"
According to the filing with the U.S. Securities and Exchange Commission (SEC), Microsoft said that "considering investment in Bit" will be an option on the shareholder ballot at the company's annual shareholder meeting in early December.
SOURCE: https://t.co/DfqbViGPZa
— DEGEN NEWS (@DegenerateNews) October 24, 2024
The proposal was put forward by the National Center for Public Policy Research (NCPPR), a conservative lobbying group in the U.S. NCPPR argues that U.S. financial institutions have been increasingly adopting BTC since the introduction of Bit ETF funds earlier this year, and also mentions the success of MicroStrategy in its BTC holding strategy since 2020, with the company's stock price rising 300% in 2024 despite its business scale being only a small fraction of Microsoft's.
However, below the option, Microsoft's Board of Directors emphasized that they do not support this proposal and urged shareholders to vote against it, saying it is "unnecessary" because they "have already carefully considered it before".
JUST IN: Microsoft said they urge shareholders to vote against "Assessment of Investing in #Bit" because "Microsoft's management already carefully considers this topic." 👀 pic.twitter.com/Q0lASSDBWm
— Bit Magazine (@BitMagazine) October 24, 2024
In the pre-shareholder meeting 2024 statement, the Board of Directors' representative stated:
"Microsoft's Treasury and Investment Management team has evaluated various asset classes that could be invested in to serve the company's business plans, including assets to diversify the portfolio and hedge against inflation, as well as mitigate the impact of interest rate declines. Previous assessments have included Bit and other cryptocurrencies, and Microsoft will continue to monitor new trends and developments in the cryptocurrency space to make necessary decisions in the future."
Microsoft is the 3rd largest tech conglomerate in the U.S. with a market capitalization of $3.1 trillion. If the proposal to invest in Bit is approved by a majority of the company's shareholders, Microsoft will become the next major public tech company to hold BTC, following MicroStrategy and Tesla.
List of public companies currently holding Bit. Source: Bit Treasuries (25/10/2024)
Tesla recently made a surprise move to transfer $780 million worth of Bit to new wallets, but still did not sell this BTC holding despite many previous rumors.
Many financial institutions and analysts in both Asia and the West have predicted that 2025 will see many factors driving Bit growth, especially with the upcoming U.S. Presidential election, where candidate Donald Trump is a Bit supporter.
Compiled by Coin68
Join the discussion on the hottest DeFi issues in the Fomo Sapiens chat group with the Coin68 admins!!!
