Microsoft Corp. MSFT might have rejected the proposal to assess Bitcoin BTC/USD investment, but its second-largest shareholder, BlackRock, is second to none in terms of optimism for the apex cryptocurrency.
What happened: Microsoft, worth more than $3 trillion, voted down a proposal to consider adding Bitcoin to its balance sheet after the board expressed worries about the asset’s volatility.
The rejection came despite a case by MicroStrategy Executive Chairman Michael Saylor for how the plan could increase Microsoft’s market capitalization in the near term.
Interestingly, Microsoft's decision to give Bitcoin a miss contrasted sharply with how one of its biggest institutional investors viewed the cryptocurrency.
Why It Matters: BlackRock, the world's largest asset manager, holds 561.48 million shares of Microsoft, according to the company's latest 13F filing, accounting for 7.55% of the total shares outstanding. This makes BlackRock the second-biggest investor in Microsoft.
The firm, known for its bullish bets on Bitcoin, advocated allocating 1% to 2% of a portfolio to the apex cryptocurrency to have a safe-risk profile.
Moreover, BlackRock CEO Larry Fink deemed Bitcoin a unique asset class, comparing it to safe-haven assets like gold and predicting an expansion in its investment appeal.
BlackRock also launched its Bitcoin spot exchange-traded fund last year, called iShares Bitcoin Trust ETF IBIT, which became the most successful ETF debut in history.
As of this writing, IBIT is the world's largest Bitcoin-based fund, with more than $53 billion in assets under management, according to TradingView.
That said, in one of its explainer videos, BlackRock created a flutter by disputing Bitcoin’s 21 million supply limit narrative, triggering concerns that the asset manager was trying to “hijack” Bitcoin for its benefits.
It's still early to say whether ignoring Bitcoin was a costly miss or a prudent investment decision. However, cryptocurrency enthusiasts will be hoping the day comes soon when tech giants like Microsoft treat Bitcoin as a viable long-term investment option.
Price Action: At the time of writing, Bitcoin was exchanging hands at $99,332.06, up 1.03% in the last 24 hours, according to data from Benzinga Pro.
Shares of Microsoft closed 1.14% higher at $423.35 during Friday's regular trading session.
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