Microsoft invests in Bitcoin

Microsoft said in a filing with the U.S. Securities and Exchange Commission that its global finance team regularly evaluates multiple investment assets, including cryptocurrencies, for diversification and risk management purposes.

Although Bitcoin has been considered in the past, the board has not made any further investment decisions at this time due to factors such as volatility.

If the proposal is passed, Microsoft will become the largest publicly traded crypto investment company, surpassing MicroStrategy and Tesla.

Enter the game

In a filing dated Oct. 24, Microsoft disclosed that it had proposed “an evaluation of investing in Bitcoin” to certain shareholders, who will vote at a meeting on Dec. 10.

In response, MicroStrategy founder Michael Saylor posted on the X platform that if Microsoft CEO Satya Nadella wants to make another trillion dollars for Microsoft shareholders, please contact me.

Additionally, the National Center for Public Policy Research (NCPPR), which promoted the proposal, highlighted business intelligence company MicroStrategy’s Bitcoin investment strategy, noting that the company has outperformed Microsoft by more than 300% this year despite having only a small portion of Microsoft’s business.

The center also said that institutional and corporate adoption of bitcoin is becoming more “prevalent” through spot bitcoin exchange-traded funds.

The research center noted that Bitcoin remains volatile but could serve as a hedge against inflation and corporate bond yields.
“At a minimum, companies should evaluate the benefits of holding a portion of their assets (even just 1%) in Bitcoin,” it said.

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While Microsoft’s investment in Bitcoin is unlikely, it accepted Bitcoin payments on its Xbox online store between 2014 and 2018.

In addition, Microsoft has made extensive arrangements in the blockchain field:

Cloud Supply Chain: Microsoft's Cloud Supply Chain Blockchain project aims to improve the transparency, traceability and predictability of the supply chain through blockchain technology. The application of blockchain technology in the supply chain can ensure that the production and transportation records of each product are tamper-proof and traceable, thereby greatly reducing fraud and errors and improving the efficiency and reliability of the supply chain.

Project Bletchley: Microsoft has launched an enterprise blockchain architecture called "Bletchley", which defines blockchain middleware and encryption technology (Cryptlets). The goal of the Bletchley project is to provide an open, modular blockchain platform for enterprises, governments and individuals.

Azure Blockchain Service: Microsoft's Azure Blockchain Service is a fully managed blockchain service designed to simplify blockchain development and management. Enterprises can use Azure Blockchain Service to quickly build, manage and scale blockchain networks without worrying about infrastructure and operations.

Summarize

In the future, Microsoft's entry into Bitcoin will have a far-reaching impact. On the one hand, it will significantly enhance the status of Bitcoin and other cryptocurrencies in the mainstream financial market, enhance market confidence, and attract more attention from large companies and institutional investors. Microsoft's entry as a technology giant will further promote the development of blockchain technology and its application in various industries.

In general, Microsoft's entry into Bitcoin will not only redefine the landscape of the cryptocurrency market, but will also drive continued innovation and development in the global technology and financial fields, opening up a future full of infinite possibilities.