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Microsoft has placed an "Assessment in Investing in Bitcoin" on the voting ballot for its 2024 annual shareholder meeting, scheduled for early December.
The proposal was put forward by The National Center for Public Policy Research, a conservative think tank, suggesting that Microsoft should consider Bitcoin as a hedge against inflation and as part of its investment strategy.
However, the board of directors recommends voting against the proposal, arguing that it is unnecessary.
In a filing with the U.S. Securities and Exchange Commission (SEC), Microsoft stated that its management already evaluates a wide range of investable assets, including Bitcoin, to fund its ongoing operations.
The board emphasized that the firm's Global Treasury and Investment Services team continually monitors trends and developments in cryptocurrencies to inform future decision-making.
Microsoft highlighted that the volatility of Bitcoin is a significant factor to consider when evaluating cryptocurrency investments.
The company already has processes in place to manage and diversify its corporate treasury, ensuring that it can mitigate the risk of significant economic loss from rising interest rates and other market fluctuations.
If the proposal were to pass, Microsoft would become the largest publicly traded company to invest in Bitcoin, surpassing current leaders in the space.
This development would mark a significant shift in the company's investment strategy, potentially positioning Microsoft at the forefront of the cryptocurrency market.
The final decision on the proposal will be made by a majority vote of the shareholders at the upcoming meeting, not by the board of directors.
Eligible stockholders who own a certain amount of equity can propose items to be voted on at the shareholder meeting, including changes in the corporation's operations or policies and other corporate action