[NEWS] Microsoft shareholders propose "assessing Bitcoin investment"

According to documents filed with the SEC on the 24th, Microsoft shareholders plan to vote on a proposal to evaluate Bitcoin (BTC) as a corporate investment at the company's annual meeting at the end of the year.

The proposal, submitted by the Shareholder Advisory Committee, calls for a detailed evaluation of Bitcoin's potential corporate investment in Microsoft's financial operations.

Meanwhile, Microsoft's board of directors expressed opposition to the move, stating that the company's finance department is already evaluating various cryptocurrencies, including Bitcoin.

The board of directors emphasized Bitcoin's high volatility and argued that the company's current process should continue as it ensures financial stability without the need for further consideration.

To begin with, Microsoft founder Bill Gates has long been skeptical of Bitcoin, and that view remains unchanged. Gates has previously dismissed cryptocurrencies and NFTs as "a scam based on the Big Fool theory." The board of directors may have reflected Gates's intentions.

In its dissenting statement, the board emphasized the importance of stability in the company's financial operations, noting that "highly volatile assets such as Bitcoin are not suitable for securing liquidity and operating funds."

Finance and investment teams evaluate cryptocurrency

Microsoft's global finance and investment teams are already evaluating a wide range of crypto assets, including those that offer diversification and inflation protection.

The teams have long considered investing in Bitcoin and other crypto assets as part of their risk management and are continuously monitoring market trends in this area.

Microsoft's annual shareholder meeting on December 10 will also feature other important topics such as governance and executive compensation, but the Bitcoin investment proposal has become a focus amid an intensifying debate over corporate investment in crypto assets.

Microsoft has traditionally been conservative in its financial management, investing large cash reserves in low-risk assets such as bonds.

Historically, Bitcoin has been subject to extreme volatility, making it a risk asset for corporate finance departments that value liquidity and stability.

Despite the risks, interest from institutional investors in Bitcoin is growing. Hedge funds and financial institutions are increasingly incorporating cryptocurrencies into their portfolios. 

Reference: SEC Filings
Image: Shutterstock

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