Microsoft has advised shareholders to vote against a proposal to conduct a formal assessment of Bitcoin as an investment asset, highlighting that the company already considers Bitcoin as part of its investment strategy.

In an Oct. 24 filing with the U.S. Securities and Exchange Commission, the item “Assessment of Investing in Bitcoin” is listed among the proposals for the upcoming Dec. 10 annual meeting. However, the Microsoft board has recommended shareholders vote against it.

The rationale behind this recommendation is Microsoft’s assertion that a specific assessment of Bitcoin is redundant. The company claims it has “already carefully considered this topic.”

“Past evaluations have included Bitcoin and other cryptocurrencies among the options considered, and Microsoft continues to monitor trends and developments related to cryptocurrencies to inform future decision-making,” the board stated in response to the proposal.

The proposal was introduced by the independent think tank National Center for Public Policy Research. The supporting statement references MicroStrategy’s Bitcoin investment strategy and notes that the technology firm’s stock has significantly outperformed Microsoft’s, despite MicroStrategy conducting a fraction of the business.

The statement also highlights the increasing adoption of Bitcoin by various companies as an investment instrument. Additionally, it points out that BlackRock, Microsoft’s second-largest shareholder, began offering Bitcoin exchange-traded funds earlier this year.

“Bitcoin is an excellent, if not the best, hedge against inflation, and corporate bond yields are less than the true inflation rate. Companies should not risk shareholder value by ignoring Bitcoin altogether,” stated the National Center for Public Policy Research.

The think tank also suggested that institutions like Microsoft should at least consider the benefits of holding a small portion, even just 1%, of their assets in Bitcoin.

While it remains uncertain whether Microsoft will invest in Bitcoin in the near future, the company did accept Bitcoin as a payment option for its online Xbox store from 2014 to 2018.

In September 2023, a leaked document obtained by Axios indicated that Microsoft might integrate crypto wallets into its next Xbox console by 2028. However, this plan is subject to change, as the document dates back to May 2022.

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