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Highlights
- Microsoft board advises against Bitcoin investment, citing volatility and liquidity concerns.
- Shareholders to vote on Bitcoin proposal at Microsoft's annual meeting on Dec 10.
- Microsoft already monitors cryptocurrencies, but Bitcoin not prioritized in treasury plans.
Microsoft shareholders are preparing to vote on a proposal to assess 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
As per the filing with the U.S. 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, argues that the assessment is necessary due to the growing incorporation of cryptocurrencies within the world economy.
The proposal suggests that more analysis needs to be done in order to understand how BTC can improve Microsoft’s treasury functions. The vote is set to take place at the company’s annual meeting on December 10.
However, the board of directors of Microsoft has suggested that shareholders should not support the proposal. According to the company, the firm is already assessing 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 appropriate tool for corporate investments which are aimed at maintaining of liquidity and processes continuity.
Board’s Position on BTC Investment
In a statement released on Thursday, the board of directors of Microsoft outlined its reasons for rejecting the proposal. The board noted already Microsoft’s Global Treasury and Investment Services team engages in the tracking and analysis of various investments that include cryptocurrencies for strategic business purposes.
This includes considerations related to diversification, inflation protection, and risk management like the potential OpenAI buying in three years.
The board also pointed out that earlier assessments have incorporated 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 operational funding 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 monitored as part of a broader evaluation of market trends. However, they have not been prioritized due to concerns over volatility and their ability to meet the company’s financial requirements.
Amid these reports, the Bitcoin price has performed rather well in the last 24 hours. At press time, BTC price had reclaimed the $68K resistance trading 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 continues to consider 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 governance policies, executive compensation, and the election of board members will also be on the agenda. The Bitcoin investment proposal, however, has garnered significant attention as discussions around corporate adoption of cryptocurrencies continue to grow.
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