Microsoft shareholders to vote on a Bitcoin investment proposal on December 10, as board advises against it citing, volatility concerns.
Microsoft shareholders are preparing to vote on a proposal to evaluate Bitcoin as a potential corporate investment.
This proposal, put forth by a shareholder advisory board, calls for the company to thoroughly assess the potential role of Bitcoin in its treasury management.
Proposal for Bitcoin Investment at Microsoft
According to the filing with the U.S. Securities and Exchange Commission (SEC) on October 24, the proposal suggests that Microsoft should consider including Bitcoin among its investment assets.
The advisory board pushing for the proposal argues that a detailed analysis is necessary due to the increasing integration of cryptocurrencies into the global economy.
The proposal emphasizes the need for further evaluation to understand how Bitcoin could enhance Microsoft’s treasury functions. Shareholders will vote on this proposal during the company’s annual meeting on December 10.
However, Microsoft’s board of directors has recommended that shareholders reject the proposal. The company explained that it already assesses various assets, including Bitcoin, as part of its financial management processes.
The board stated that Bitcoin’s high volatility makes it unsuitable for corporate investments aimed at preserving liquidity and ensuring process continuity.
Microsoft’s Board’s Position on Bitcoin
In a statement released on Thursday, Microsoft’s board of directors outlined its reasons for opposing the proposal.
The board explained that Microsoft’s Global Treasury and Investment Services team already tracks and analyzes various investments, including cryptocurrencies, for strategic purposes.
This analysis includes factors such as diversification, inflation protection, and risk management—similar to considerations around OpenAI’s potential acquisition in three years.
The board highlighted that previous assessments had factored in Bitcoin’s price volatility, which contributed to the current decision.
Microsoft’s treasury requires stable and reliable assets to support liquidity and operational funding, which are critical to the company’s financial health.
Cryptocurrencies in Treasury Operations
Microsoft’s treasury team has been evaluating cryptocurrencies like Bitcoin for several years as part of broader market trend assessments.
However, these assets have not been prioritized due to concerns about volatility and their suitability for meeting the company’s financial needs.
Amid these discussions, Bitcoin has performed well, with its price rising in the last 24 hours. As of the latest update, BTC was trading at $68,168, reflecting a 2.50% rally.
The board stressed that while Microsoft continues to monitor developments in cryptocurrency, the company already has processes for managing its investments.
They argue that a separate public evaluation of Bitcoin, as the proposal requests, would be redundant and unnecessary, given that the team already incorporates these assets into their risk management strategies.
The shareholder meeting on December 10 will cover other important votes in addition to the Bitcoin proposal, including governance policies, executive compensation, and the election of board members.
However, the Bitcoin investment proposal has attracted significant attention as corporate adoption of cryptocurrencies remains a growing topic of discussion.
