MicroStrategy’s Bitcoin Bet Pays Off—Will Microsoft Follow?

 

Hey everyone, here’s the latest buzz: on December 10th, Microsoft’s shareholders will vote on a proposal that could make the tech giant the next major company to add Bitcoin to its balance sheet. The proposal, brought forward by the National Public Policy Research Center, suggests Microsoft should start holding Bitcoin as part of its financial assets.

 

But guess what? Microsoft’s board isn’t on board with this. They’ve recommended shareholders vote against the proposal, citing the volatility of crypto as a major risk to the company’s financial stability. According to them, Microsoft’s global finance team is already evaluating different assets, and they’ve concluded that crypto’s unpredictability makes it unsuitable for their needs. Stability, it seems, is still the name of the game when it comes to corporate finances, and Bitcoin just doesn’t fit that mold.

 

Right now, only 31 publicly traded companies around the world—like MicroStrategy (MSTR.US), Tesla (TSLA.US), and Coinbase (COIN.US)—have Bitcoin on their balance sheets. MicroStrategy is especially all-in, holding over 400,000 BTC. This bet has paid off big-time, with the company’s stock soaring 542% this year, compared to Bitcoin’s 143% rise.

 

 

Speaking of Microsoft (MSFT.US), it’s worth noting that the company’s stock has been performing well recently. On December 4th, MSFT closed at $437.42, up 1.44% for the day, and showing a 16.8% increase from the same time last year. But here's the thing: NASDAQ Composite posted a 37% rise over the same period. So, Microsoft's growth isn't exactly standing out in the context of the broader market rally. Even though MSFT has shown solid returns, it’s lagging behind the tech sector’s overall performance.

 

 

Michael Saylor, the guy behind MicroStrategy, even gave a 3-minute pitch to Microsoft’s board just last week, arguing why they should get in on Bitcoin. But for now, Microsoft isn’t biting.

 

Honestly, this got me thinking: Could we see more companies follow MicroStrategy’s lead, or is crypto’s volatility just too much of a turn-off for the big players like Microsoft? On one hand, MicroStrategy’s Bitcoin bet has been hugely successful, and with Bitcoin’s recent price surge, holding some might look like a smart hedge against inflation or market risks. On the other hand, Microsoft is sticking to that “steady ship” approach—they need predictable, stable investments for their global operations.

 

But here’s the kicker: What if other companies take the plunge? If major financial institutions like Morgan Stanley or JPMorgan dive deeper into crypto and offer Bitcoin custodial services, their action can totally change the landscape. And if the SEC adjusts its accounting rules to make holding crypto less complicated, we may see more companies warming up to the idea.

 

What do you think? Will Microsoft eventually add Bitcoin to its balance sheet? And should other companies be considering following MicroStrategy’s example? #microsoft