Microsoft Planning to Invest in Bitcoin, Shareholders to Give Feedback

Despite the volatility in the crypto market, the interest of investors in it is increasing. Software companies have also started betting in this segment. After MicroStrategy, Microsoft, one of the big software companies, can also invest in Bitcoin. The company has sought feedback from its shareholders for this.

Microsoft has given this information in a filing to the Securities and Exchange Commission (SEC) of America. Earlier, the company had explored business possibilities in crypto and Web3 but it has not added Bitcoin or any other cryptocurrency to its balance sheet. About two years ago the company had listed the position of ‘Director of Business Development – Cryptocurrencies’. This indicated that it wanted to expand in blockchain technology. Microsoft has also invested in blockchain firm ConsenSys.

Earlier, American electric vehicle (EV) maker Tesla and software company MicroStrategy had invested in Bitcoin. Recently MicroStrategy has purchased approximately $1.1 billion in Bitcoin. This company had purchased approximately 18,300 bitcoins. MicroStrategy had said that these bitcoins were purchased between August 6 and September 12. This is the company’s largest purchase of Bitcoin in the last three years. Earlier, MicroStrategy had purchased 19,452 bitcoins in February 2021. It has approximately 2,44,800 bitcoins. Their value is approximately 14 billion dollars. This is approximately one percent of the total number of Bitcoins available. BlackRock’s iShares Bitcoin Trust is the largest Bitcoin fund with approximately $20 billion in assets.

MicroStrategy’s corporate strategy includes buying cryptocurrencies. It started buying Bitcoin about four years ago. The company’s chairman, Michael Saylor, cited the reason for this as a hedge against inflation. For this reason, Bitcoin supporters also praised MicroStrategy. The share price of the company has increased significantly this year. At the end of last year, MicroStrategy and its subsidiaries purchased approximately 14,620 bitcoins at an average price of $42,110. This step was taken by the company to maintain the value of its reserve assets.