Is Pressure Mounting on Microsoft to Buy Bitcoin?

As the year wraps up, Microsoft’s annual shareholder meeting, scheduled for December 10th, has a hot topic on the agenda—a proposal advocating for the tech giant to diversify its holdings by investing in Bitcoin. Filed with the SEC on Thursday, the proposal suggests that Bitcoin could enhance shareholder value and act as a hedge against inflation, outperforming Microsoft’s current investments in corporate bonds. However, Microsoft’s board of directors strongly recommends shareholders vote against it.

The proposal, titled “Assessment of Investing in Bitcoin,” argues that corporate bonds yield returns barely above inflation and suggests Bitcoin as a powerful alternative. According to the proposal, “In inflationary periods, corporations have a duty to consider assets with higher appreciation potential than bonds, even if they come with more short-term volatility.”

Michael Saylor, CEO of MicroStrategy, is ready to orange-pill Microsoft CEO Satya Nadella. In a tweet on X Saylor called on Nadella, saying, “Hey @SatyaNadella, if you want to make the next trillion dollars for $MSFT shareholders, call me.”

Saylor presented Bitcoin as a potential trillion-dollar game-changer for Microsoft, suggesting it could significantly boost shareholder value. For now, however, Microsoft sticks to a conservative strategy, focusing on U.S. government securities and corporate bonds—safe bets in today’s shaky economic landscape.

Estimates place Microsoft’s cash reserves between $75 billion and $104 billion, much of it locked into these low-risk assets, reflecting a cautious approach amid market volatility.

Source: X

Microsoft’s board, however, is unconvinced, asserting in the “Board Recommendation” section that the company already evaluates Bitcoin and other assets. The board stated, “Microsoft’s management has robust processes in place to assess such investments,” noting that the company has a Global Treasury and Investment Services team that routinely analyzes diverse assets to safeguard shareholder interests against inflation.

This proposal originated from The National Center for Public Policy Research, a conservative think tank and advisor to Project 2025, an initiative aiming to broaden executive power and promote traditionalist policies under the next Republican administration. The proposal urges Microsoft to consider Bitcoin but warns against excessive allocation, recommending no more than 1% of assets.

Meanwhile, MicroStrategy’s Bitcoin-focused strategy has delivered big results. The company’s stock has soared by 250% over the past year, supported by a cache of 252,220 Bitcoins, now valued at around $17 billion. This success contrasts sharply with Microsoft’s 16% stock rise over the same period, adding fuel to the debate over corporate crypto investments.