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Microsoft Adds 'Bitcoin Investment Assessment' to December Shareholder Vote
Microsoft has included an “assessment in investing in bitcoin” as a voting item for its upcoming annual shareholder meeting on Dec. 10. Proposed by the National Center for Public Policy Research, the initiative urges Microsoft to consider bitcoin investments. However, Microsoft’s board recommends voting against the measure, citing that the company’s investment team already evaluates a broad range of assets, including bitcoin, to support operational goals and risk management. Separately, U.S. state regulators reported a sharp rise in investigations into digital assets in 2023, particularly in fraud cases involving social media, staking services, and high-yield crypto investments.
US State Regulators Report Surge in Tech and Digital Asset Investigations
U.S. state regulators reported a sharp increase in investigations into digital assets and tech-related fraud, with cases involving cryptocurrencies, staking, and social media scams rising substantially in 2023, according to the North American Securities Administrators Association (NASAA). This year's enforcement actions included 343 digital asset cases, 144 staking cases, and 205 social media fraud cases, as reported by NASAA's latest survey. The surge in actions reflects higher complaints and enforcement needs in response to new scams, including “pig butchering” schemes. State regulators and agencies like the SEC have intensified scrutiny, targeting unregistered staking services and high-yield crypto offerings. The SEC has announced plans to prioritize crypto oversight in 2025, with a focus on unregistered crypto-asset services and newly approved exchange-traded products.
South Korea to Increase Oversight on Cross-Border Crypto Transactions
South Korea's Finance Minister Choi Sang-Mok announced plans to introduce reporting requirements for businesses handling cross-border crypto transactions to combat foreign exchange and tax evasion crimes. The upcoming rules will mandate that such firms pre-register with authorities and submit monthly transaction reports to the Bank of Korea. Choi emphasized the need to address cross-border crypto transfers, which he called a “blind spot” for tax and customs services. Recent statistics from Korea’s Customs Service show that over $1.2 billion in foreign exchange crimes since 2020 were crypto-related. Legal definitions for virtual assets will be formalized in the Foreign Exchange Transactions Act, with new regulations expected by mid-2025. This move builds on South Korea's recent crypto regulations, which require virtual asset providers to ensure stricter security, asset segregation, and transparency for user protection.
Trading Desk Insights
Bitcoin's market performance has been relatively muted, failing to keep pace with recent gains seen in the equity markets. A decrease in Treasury yields has provided a boost to risk assets. Currently, altcoins are lagging behind, with meme coins experiencing the most significant declines. Over the past month, Ethereum has dipped by 2%, whereas Bitcoin has climbed by 7%, and Solana has surged by 18%, inching closer to its peak dominance of 3.7%.
A notable development capturing market attention is Microsoft's latest SEC filing, which outlines topics for its upcoming shareholder meeting, including a proposal to diversify into Bitcoin as a hedge against inflation and other macroeconomic factors. The board has advised shareholders to reject this proposal.
In other news, Polymarket saw unusual activity when an individual or entity acquired over 4.5 million Trump contracts, temporarily skewing the odds to 99% due to the transaction's slippage.
Turning to the cryptocurrency ETF landscape, Bitcoin ETFs saw significant inflows totaling $188 million, predominantly driven by Blackrock with $165.5 million. In contrast, Ethereum ETFs reported a modest $2.3 million in inflows, underscoring its underwhelming performance.
MicroStrategy's trading volume has notably reached 18% of Nvidia's this October, signaling robust investor interest. Despite MicroStrategy's market cap being just 1.5% of Nvidia's, its stock has skyrocketed over 240% this year, outstripping Nvidia by 50%. The company is on the brink of achieving a $50 billion market cap. Following the S&P 500's rebound from a three-day slump, stock futures climbed higher, indicating investor optimism for concluding a tumultuous week on a positive note.
Crypto Charts
Disclaimer
This research is for informational use only. This is not investment advice. Other than disclosures relating to Secure Digital Markets this research is based on current public information that we consider reliable, but we do not represent it is accurate or complete, and it should not be relied on as such. The information, opinions, estimates, and forecasts contained herein are as of the date hereof and are subject to change without prior notification. We seek to update our research as appropriate.
Any forecasts contained herein are for illustrative purposes only and are not to be relied upon as advice or interpreted as a recommendation. The price of crypto assets may rise or fall because of changes in the broad market or changes in a company's financial condition, sometimes rapidly or unpredictably. Past performance is not a guide to future performance, future returns are not guaranteed, and a loss of original capital may occur. Fluctuations in exchange rates could have adverse effects on the value or price of, or income derived from, certain investments. We and our affiliates, officers, directors, and employees, excluding equity and credit analysts, will from time to time have long or short positions in, act as principal in, and buy or sell, the securities or derivatives, if any, referred to in this research.
The information on which the analysis is based has been obtained from sources believed to be reliable such as, for example, the company’s financial statements filed with a regulator, company website, company white paper, pitchbook and any other sources. While Secure Digital Markets has obtained data, statistics, and information from sources it believes to be reliable, it does not perform an audit or seek independent verification of any of the data, statistics, and information it receives.
Unless otherwise provided in a separate agreement, Secure Digital Markets does not represent that the report contents meet all of the presentation and/or disclosure standards applicable in the jurisdiction the recipient is located. Secure Digital Markets and their officers, directors and employees shall not be responsible or liable for any trading decisions, damages or other losses resulting from, or related to, the information, data, analyses, or opinions within the report.
Crypto and/or digital currencies involve substantial risk, are speculative in nature and may not perform as expected. Many digital currency platforms are not subject to regulatory supervision, unlike regulated exchanges. Some platforms may commingle customer assets in shared accounts and provide inadequate custody, which may affect whether or how investors can withdraw their currency and/or subject them to money laundering. Digital currencies may be vulnerable to hacks and cyber fraud as well as significant volatility and price swings.
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