Microsoft shareholders are preparing to vote on a proposal to rate Bitcoin as a potential corporate investment. This proposal, made by a shareholder advisory board, requires the company to conduct a thorough assessment of the potential of Bitcoin in Microsoft’s treasury management.
Microsoft Bitcoin Investment Proposal
According to the filing with the US Securities and Exchange Commission (SEC) made on October 24, the proposal suggests that Microsoft should include Bitcoin in its list of investment assets. The proponents of the proposal, the advisory board, argue that the assessment is necessary due to the growing incorporation of cryptocurrencies into the global economy.
The proposal suggests that more analysis needs to be done to understand how BTC can improve Microsoft’s treasury functions. The vote will take place at the company’s annual meeting on December 10.
However, Microsoft’s board suggested that shareholders should not support the proposal. According to the company, the firm is already evaluating several assets, including BTC, and the process is an ongoing part of its financial management. The board stated that due to the rather high volatility of Bitcoin it cannot be considered as the suitable instrument for corporate investments aimed at maintaining liquidity and process continuity.
Board’s position on BTC investment
In a statement released Thursday, Microsoft’s board outlined its reasons for rejecting the proposal. The board has already noted that Microsoft’s Global Treasury and Investment Services team is engaged in tracking and analyzing various investments that include cryptocurrencies for strategic business purposes.
This includes considerations related to diversification, inflation protection and risk management such as the potential OpenAI purchases over three years.
The board also pointed out that earlier assessments included BTC’s price fluctuations, which led to the current decision. They pointed out that the company’s treasury needs steady and certain assets to help meet the organization’s liquidity and operating financing needs that are essential to Microsoft’s financial sustainability.
Cryptocurrency Considerations in Treasury Operations
Microsoft’s treasury team has been assessing cryptocurrencies like BTC for several years. According to the board, these assets are being monitored as part of a broader evaluation of market trends. However, they were not prioritized due to concerns about volatility and their ability to meet the company’s financial requirements.
Amidst these reports, the Bitcoin price has performed quite well over the past 24 hours. At press time, BTC price reclaimed the $68K resistance trade at $68,168 a 2.50% rally.
The board emphasized that while Microsoft continues to monitor developments in the cryptocurrency space, it already has processes in place to manage its investments. They believe that an additional public evaluation of BTC, as requested in the proposal, would be redundant and unnecessary, as the team is still considering these assets in their risk management strategies.
The upcoming December 10 shareholder meeting will include several important votes beyond the Bitcoin proposal. Topics such as management policies, management compensation and the election of board members will also be on the agenda. However, the Bitcoin investment proposition has received significant attention as discussions about corporate adoption of cryptocurrencies continue to grow.
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Kelvin Munene Murithi
Kelvin is a leading author with expertise in crypto and finance, with a Bachelor’s degree in Actuarial Science. Known for his penetrating analysis and insightful content, he possesses a strong command of English and excels in conducting thorough research and delivering timely cryptocurrency market updates.
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