Microsoft's board of directors recommends a vote against, stating that they have "evaluated a variety of investable assets, including Bitcoin."
A document filed with U.S. securities regulators reveals that Microsoft shareholders will vote in December to determine whether the tech giant should publicly assess the addition of Bitcoin to its balance sheet.
In a filing on October 24, Microsoft disclosed that it had proposed an "evaluation of investing in Bitcoin" to certain shareholders, who will vote on the matter at a meeting on December 10.
Nevertheless, the Microsoft board recommends a vote against, as they have already "evaluated a broad range of investable assets," including Bitcoin.
The National Center for Public Policy Research (NCPPR) has spearheaded this proposal, which highlights the Bitcoin investment strategy of business intelligence firm MicroStrategy and notes that, despite the company's operations being a small fraction of Microsoft's, it has outperformed Microsoft by more than 300% this year.
The center also states that the adoption of Bitcoin by institutions and corporations through spot Bitcoin exchange-traded funds is becoming increasingly "common."
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The research center points out that Bitcoin remains volatile but can serve as a hedge against inflation and corporate bond yields.
"At the very least, the company should evaluate the benefits of holding Bitcoin as part of its assets (even if only 1%)," it said.
Cointelegraph contacted Microsoft and NCPPR, but received no immediate response.
NCPPR describes itself as a "non-partisan, free-market, independent conservative think tank" dedicated to ensuring the freedom of Americans today and for future generations.Although it is unlikely that Microsoft will invest in Bitcoin, it did accept Bitcoin payments in its online Xbox store from 2014 to 2018. The company has invested more in artificial intelligence technology than in blockchain technology. Google Finance data shows that Microsoft's (MSFT) stock price was relatively flat on October 24th, rising by 0.03% to $424.70. "Microsoft's Global Treasury and Investment Services team evaluates various investable assets to fund Microsoft's ongoing operations, including assets that are expected to provide diversification and inflation protection, as well as to mitigate the risk of significant economic losses due to rising interest rates," the company wrote in its 2024 annual shareholder meeting notice and proxy statement. "Past evaluations have included Bitcoin and other cryptocurrencies among the options considered, and Microsoft will continue to monitor trends and developments related to cryptocurrencies to inform future decision-making." The company also noted that volatility "is a factor to consider when evaluating cryptocurrency investments," and it has "established processes for managing and diversifying the company's funds." Microsoft (stock code: MSFT) is the third-largest technology company in the United States, with a market value of $3.157 trillion. If the proposal is passed, the company would become the largest publicly traded cryptocurrency investor, ahead of MicroStrategy and Tesla. According to securities law, qualified shareholders who own a certain number of shares can propose matters to be voted on at the shareholders' meeting, including changes in company operations or policies, as well as other corporate actions. The final decision on these proposals is usually determined by a majority vote of shareholders rather than the board of directors.
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