You may have heard about a small software company from Seattle. Only a few billion people use their software and other products on daily basis for personal, business, and entertainment purposes. I am not fond of this company, but the story of Microsoft is definitely not boring. There is no shortage of stories about Microsoft. We can find deceitful practices, monopolistic tendencies, dumb ideas, hilarious leadership actions in these stories. But what is most important in the story of Microsoft is its success and ability to maintain is despite making many many strategic and business blunders.
Microsoft has been a global brand for decades now. It is a big voice in technology space, innovator in computing, and still a leader all things tech. If I were to choose I almost always go with Apple. While both may seem to be competitors, their completely different business models made them equally important in the advancement in computing devices. I have written in the past how it is so dumb of Apple not be involved in bitcoin in one way or the other. There are so many ways these powerful companies can be involved in this new technology, position themselves better into the future, bring useful products for their customers and earn more money for their investors. So far both have stayed away from bitcoin, blockchain and crypto.
It looks like things are changing. In the latest news Microsoft board announced that they will be holding a voting on investing in bitcoin. The same board is actually advising against investing in bitcoin. But it looks like there are important shareholders that would like to consider the bitcoin strategy that MicroStrategy has implemented. What MicroStrategy have done with their bitcoin strategy is probably the most brilliant business and financial move in the WallStreet in the recent years. The bet on bitcoin definitely has paid off to its investors. And things are just getting started with bitcoin.
I have no doubt in my mind that any big tech company can have huge benefits in getting involved in bitcoin. Not just as an investment, but as a technology. It seems so obvious to me. Yet I don't understand how such a simple idea doesn't make sense to the leadership in these companies. I understand that in the past one of the biggest obstacles was the government's reaction and regulations. Now all these are removed. Bitcoin is accepted as a commodity. There are multiple stop ETFs being traded in the markets. Politicians including presidential candidates have changed their negative stance of the past to embracing bitcoin. This is the time. Now that is for tech companies. But MicroStrategy has shown that their bitcoin strategy can be implemented by any company, not necessarily only by tech companies.
While I doubt this vote on bitcoin investment Microsoft is holding will result in favor of investing in bitcoin, it is still a significant step in the right direction. It seems like Microsoft board and leadership are opposing this idea and have no interest at all, but there are shareholders who would like to see Microsoft's involvement in bitcoin.
The second largest shareholder in Microsoft is BlackRock. Now things are making a little bit more sense. BlackRock has fully embraced bitcoin, and they have great plans for bitcoin as an investment. They are not turning back now. They keep accumulating more and more bitcoin, unlike rest of the bitcoin ETFs. They probably are the winner in the bitcoin ETF competition now. It makes perfect sense that BlackRock as one of the largest shareholders would want to see companies like Microsoft to invest in bitcoin as well. Just like they figured out bitcoin is the way, they see how MicroStrategy's bitcoin journey has been great so far. So why not one of the big companies they are invested in to utilize the same strategy. I am certain BlackRock will vote in favor of adopting bitcoin strategy for Microsoft. However, it is not clear if there will be enough votes to make this happen. BlackRock is an influential player, so they may convince other shareholders as well. I would recommend firing the current board if bitcoin strategy actually gains more votes. Sounds like this board wouldn't do any good with such strategy.
Bitcoin's top promoter Michael Saylor didn't miss an opportunity to present his case once this news broke. Saylor went on X and tweeted at Microsoft's CEO Satya Nadella the following:
Hey @SatyaNadell, if you want to make the next trillion dollars for $MSFT shareholders, call me.
Saylor also included a screenshot of the bitcoin vote proposal by shareholders which mentions MicroStrategy and its successful implementation of bitcoin investment. It also states that institutional and corporate adoption of Bitcoin is becoming more commonplace. Well, it is not that common yet. But the idea is definitely common and simple one. Many believe this is just the beginning and institutional and corporate involvement will only grow.
I can see how bit companies, or any companies would be conservative and be scared to be pioneers in taking risky but reasonable business and financial actions. We have passed this time now. MicroStategy did it. BlackRock did it. El Savador did it. Bhutan did it. Not only these companies and governments got involved in bitcoin but has a proven record of success by now. At this point it a negligence not to consider bitcoin by such entities.
If for some reason this bitcoin vote ends up in favor of bitcoin strategy and Microsoft actually becomes a pro-bitcoin company, this will be huge for both. Competition will accelerate. If Microsoft goes into bitcoin, it is highly unlikely Apple, Meta, Google, Amazon, etc will stay in the sidelines. I doubt it will happen this time. But at least the conversation continues, more and more executives will be getting educated in the technology and the new money. If Microsoft fails this time, I am sure there will others who wouldn't make the same mistake. Let me know your thoughts in the comments.