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Microsoft is the third most valuable company in the world, behind Nvidia and Apple.
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According to its latest balance sheet, the company has USD 78 billion to make investments.
The Board of Shareholders of Microsoft, an American software development company, will vote on a “Bitcoin investment evaluation” on December 10.
In it document filed with the Securities and Exchange Commission (SEC), Microsoft’s Global Treasury and Investment Services team highlights the importance of managing assets to “protect the company against inflation and diversify its economic risks.” As part of that approach, he recommends that companies consider “the benefits of holding some BTC, even if it is 1% of their assets.”
However, and as CriptoNoticias already reported, the Board of Directors of the Redmond technology giant recommended to shareholders vote against the proposal arguing that “it is unnecessary” due to the volatility of digital currencies such as bitcoin.
Although the decision will be known on December 10, the debate becomes relevant given that Microsoft is the third most valuable company in the world, behind Apple and Nvidia, and, for that reason, has the potential to cause a significant impact on the digital asset market.
In this context, it may be interesting to take out the calculator and do numbers to know how many BTC the company could acquire if it finally decides to include it as part of its reserves.
According to your latest financial reportthe company has 78,000 million dollars to make investments and cover various operational and strategic needs.
At the time of publication of this note, the price of the coin created by Satoshi Nakamoto is $95,682.
BTC quote from January 1 to December 2, 2024. Source: TradingView.
Now it’s time to do the math. If the firm decided to spend the total of 78,000 million dollars, it could acquire 815,647 BTCat today’s price.
If you invest 1%, as recommended by the firm’s Global Treasury and Investment Services, you would be purchasing 8,156 BTC.
For its part, Fidelitya digital asset firm, suggests allocating at least a percentage that is around 1% and 5%. Taking that advice as a reference, Microsoft could buy between 8,156 BTC and 40,782 BTC.
This means that, if the proposal to buy BTC finally moves forward, would become one of the publicly traded companies with the most bitcoin in its treasuries. According to data from Bitcoin Treasuriesthe top 5 is headed by: MicroStrategy (402,100 BTC), Marathon Digital (34,794 BTC), Riot (10,928 BTC), Tesla (9,720 BTC) and Coinbase (9,480 BTC).
Companies that have BTC in their treasuries as a reserve asset. Fountain: Bitcoin Treasuries.
Precisely, in the document before the SEC, there is a segment dedicated to the company that he presides Michael Taylorin which it stands out: “Microstrategy, which like Microsoft is a technology company, but unlike Microsoft has BTC on its balance sheet, has had a higher performance of its shares than Microsoft this year, with 313% despite doing only a fraction of the business that Microsoft does.”
As CriptoNoticias already reported, Saylor spoke to Microsoft executives about the benefits of a bitcoin treasury. “Microsoft cannot afford to miss the next technological wave. And Bitcoin is that wave,” said the founder of MicroStrategy.
In that sense, he highlighted some qualities of the digital currency such as, for example, that it has an issuance limit set at 21 million BTC, which makes it in a scarce good that is not exposed to the monetary policies of central banks or inflation. Furthermore, he said:
«Bitcoin is the best asset you can have. The numbers explain themselves. It makes much more sense to buy bitcoin than to buy your own stock (MSFT) back, or hold bitcoin instead of holding bonds. If you want to outperform, you’re going to need bitcoin. And those bonds are undermining your options market and your asset liquidity. Luckily, they have an alternative. Public support for Bitcoin is growing, as is political support, support for Bitcoin reserve strategies, as well as support from Wall Street. And the president of the United States says “never sell your bitcoin.”
Michael Saylor, founder of MicroStrategy.
It is interesting to mention that while the company debates whether or not it will evaluate the investment in bitcoin, the price of the digital currency continues to rise. While on October 24—when the news became known—the price of bitcoin was $64,000, at the time of this publication it is close to $95,000. If Microsoft does not make a decision in time, a great opportunity may be lost.
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