Microsoft Lays Out Bitcoin Investments Proposal, Urges Shareholders to Vote
Microsoft’s giant technology company is considering diversifying its investment moves and recently proposed a Bitcoin proposal.
Shareholders will vote on this proposal in its upcoming shareholders meeting on December 10. However, Microsoft’s filing revealed that its board of directors urges voting against the proposal.
Microsoft Files A Proposal To Assess Investing In Bitcoin
A filing with the US Securities and Exchange Commission (SEC) revealed Microsoft’s interest in Bitcoin investment.
The company’s proposal, tagged “Assessment in Investing in Bitcoin,” was presented as an investment diversification on its balance sheet.
Microsoft set the proposal as a voting item for its upcoming shareholder meeting on December 10. The filing revealed that the National Center for Public Policy Research (NCPPR), a conservative establishment, initiated the proposal for Microsoft.
According to the proposal, NCPPR pointed out how intelligence firm MicroStrategy repositioned for more growth using a Bitcoin investment strategy. Also, it noted that MicroStrategy has surpassed Microsft by over 300% YTD, although the former handles just a fraction of business compared to Microsoft.
Again, NCPPR mentioned the growing institutional and corporation adoption of the asset through spot BTC exchange-traded funds (ETFs). NCPPR acknowledged that despite Bitcoin’s volatility, the token still serves as a hedge against inflation and corporate bond yields.
In addition, the research center stated: “At minimum, companies should evaluate the benefits of holding some, even just 1% of its assets in Bitcoin.”
Microsoft Board Of Directors Recommends A Vote Against The Proposal
Alongside the proposal, the filing indicated a rejection from the Microsoft board of directors. It highlighted the information, “The Board recommends a vote AGAINST this proposal.”
The filing detailed that the board saw the proposal as “unnecessary,” considering that the company’s management had evaluated the topic. Moreover, the firm acknowledged the evaluation process in its Notice of Annual Shareholders Meeting and Proxy Statement 2024.
It stated that Microsoft’s Global Treasury and Investment Services team assesses several investable assets that could suit the company’s ongoing operations.
In its evaluation process, the team considers assets that could provide diversification, hedge inflation, and mitigate some risks associated with drastic economic loss from increasing interest rates.
Also, the statement indicated: “Past evaluations have included Bitcoin and other cryptocurrencies among the options considered, and Microsoft continues to monitor trends and developments related to cryptocurrencies to inform future decision-making.”
The shareholders will now decide the fate of the Bitcoin proposal on December 10. Even though Microsoft is still considering investing in Bitcoin, the firm has incorporated the asset in the past.
Between 2014 and 2018, the company supported Bitcoin payments on its online Xbox Store. Microsoft focuses more on artificial intelligence (AI) technology, focusing less on blockchain.
