Microsoft’s annual shareholders meeting is heating up over Bitcoin investment. With Bitcoin already gaining momentum due to rising expectations around a potential Trump presidency, some shareholders are advocating for the tech giant to consider diversifying into the cryptocurrency.
On Thursday, Microsoft included “Assessment of investing in Bitcoin” in its annual shareholders’ meeting agenda submitted to the U.S. Securities and Exchange Commission (SEC). The shareholder advisory committee proposed this agenda item.
This proposal was put forward by the shareholder advisory committee, which argued that during inflationary times, Microsoft should consider allocating part of its balance sheet to assets like Bitcoin, which could appreciate more than traditional assets like bonds despite the higher short-term volatility. The committee suggested that while the company shouldn’t hold excessive amounts of Bitcoin, completely avoiding the asset could put shareholder value at risk.
Microsoft’s board of directors countered the proposal, advising shareholders to vote against it. The board explained that the company’s finance department already assesses various assets, including cryptocurrencies like Bitcoin, but emphasized that corporate financial operations prioritize stability. They argued that, due to Bitcoin’s high volatility, such assets are unsuitable for maintaining liquidity and operational funds. The board firmly expressed its opposition to this agenda item.
Microsoft’s annual shareholders meeting is scheduled for December 10. While the meeting will discuss various topics, such as governance and executive compensation, the Bitcoin debate is expected to take center stage. If shareholders approve the Bitcoin investment assessment and it leads to actual investment, Bitcoin’s upward trend could gain significant momentum.
Bitcoin peaked at $71,900 in early June, then declined until early September, retreating to around $52,000.
However, with growing expectations of Repubican candidate Donald Trump’ winning the next presidency, he has shown a favorable stance towards digital assets. This has led to Bitcoin’s recovery of up to about $68,000.
If news breaks that the world’s largest IT company is investing in Bitcoin, analysts predict it could push the price to new all-time highs. An industry insider noted that Microsoft has historically adopted a conservative approach to financial management, primarily diversifying its cash assets into low-risk investments such as bonds. The insider suggested that the board’s opposition likely stems from its strong focus on financial stability.
The insider further explained that Bitcoin’s high volatility poses significant risks. However, despite these concerns, institutional interest in Bitcoin continues to grow. They noted that while companies like Microsoft are currently adopting a cautious, wait-and-see approach, a shift in their stance could potentially lead to major changes in the market.
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