Blackrock’s Stake Fuels Speculation Over Microsoft’s Bitcoin Future
Speculation emerged last week around Microsoft’s upcoming Dec. 10 shareholder meeting, following a U.S. Securities and Exchange Commission (SEC) filing that revealed a proposal urging Microsoft to consider bitcoin (BTC) as a treasury asset. Advanced by the National Center for Public Policy Research, the proposal suggests that Microsoft allocate at least 1% of its assets to bitcoin as a hedge against inflation.
Investor Fred Krueger noted on social media platform X that Blackrock, holding a 7% stake in Microsoft (MSFT), would vote on the proposal. Blackrock, the world’s largest asset manager, has shown strong support for bitcoin. CEO Larry Fink has expressed confidence in the cryptocurrency, calling himself “a big believer” and describing BTC as “bigger than any government” and a commodity rivaling gold. Blackrock’s spot bitcoin ETF, the Ishares Bitcoin Trust (IBIT), is the largest spot bitcoin ETF, attracting substantial inflows since its launch.
“Blackrock owns 7% of MSFT, second only to Vanguard,” Krueger highlighted, elaborating:
Blackrock, as a significant shareholder owning approximately 7% of Microsoft (MSFT), typically votes on its shares at shareholder meetings. As one of the largest asset management firms, Blackrock actively participates in the corporate governance of the companies in which it invests.
“They exercise their voting rights on various issues such as the election of board members, executive compensation, mergers and acquisitions, and other corporate policies. Their voting decisions are guided by their fiduciary duty to act in the best interests of their clients, who are the actual owners of the shares they manage,” Krueger further shared.
According to Microsoft’s filing with the SEC, the shareholder proposal, known as Proposal 5, contends that Microsoft could enhance shareholder value by diversifying its treasury holdings with bitcoin, given rising inflation concerns. The proposal points to the Consumer Price Index’s underestimation of inflation and suggests that U.S. government securities and bonds struggle to keep up with inflation, unlike bitcoin. It also notes bitcoin’s remarkable performance, highlighting a 99.7% rise over the past year and a 414% increase over five years, far outpacing corporate bonds. Microsoft’s board, however, has recommended shareholders reject the proposal, arguing that bitcoin’s volatility undermines stable treasury management.
Source:news.bitcoin.com
