[NEWS] Microsoft rejects Bitcoin investment proposal at shareholder meeting

On the 10th, Microsoft rejected a proposal to add Bitcoin (BTC) to its balance sheet at its shareholders' meeting.

According to documents submitted to the SEC (US Securities and Exchange Commission), Microsoft deemed the proposal "unnecessary." The board of directors had recommended voting against the proposal even before the shareholders' meeting. The submitted documents also stated, "While the board requests that the proposal be evaluated, we believe this is unnecessary as Microsoft's management has already carefully considered the topic."

In addition, it pointed out that "As stated in the proposal, the volatility of cryptocurrencies is a factor to consider for investments in corporate financial applications that require stable and predictable investments to ensure liquidity and operating funds." This suggests that the high volatility of cryptocurrencies, including Bitcoin, is viewed as a major risk when considering investment strategies.

The proposal was made by the National Center for Public Policy Research (NCPPR), a conservative think tank, and prior to the shareholders meeting, Michael Saylor, chairman of MicroStrategy, which holds a large amount of Bitcoin, also explained the benefits of investing in Bitcoin to the board of directors.

However, since Microsoft places importance on stable investment strategies that minimize risk as much as possible, it could be said that an investment strategy in Bitcoin was a high hurdle.

NCPPR, which has asked Microsoft to evaluate its bitcoin investments, also proposed a financial strategy to Amazon on the 6th of this month to hold part of its assets in bitcoin. The proposal argues that Amazon should hold 5% of its assets in bitcoin and asks that this be taken up as an agenda item at the general shareholders meeting to be held in April next year.

While bitcoin is highly volatile, its price has been steadily rising, and companies are increasingly holding it as part of their financial strategies. In Japan, Metaplanet, listed on the Tokyo Stock Exchange Standard, is also developing a financial strategy through bitcoin. The stock prices of MicroStrategy and Metaplanet, which were recently listed, have risen significantly in line with the rise in bitcoin prices, making them model cases for listed companies holding crypto assets.

Reference: SEC Documents
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