Although the idea of allocating a portion of the company’s assets to Bitcoin gained support among some shareholders, it was not possible to obtain unanimous support to approve the proposal.
The shareholders of Microsoft They made a key decision: the technology giant will not diversify its assets into bitcoin (BTC). The vote, promoted by the think tank conservative National Center for Public Policy Research (NCPPR)proposed allocating 1% of the company’s total assets to bitcoin as a strategy to protect against inflation and generate more returns for shareholders. According to data from BloombergMicrosoft currently has u$s78.4 billion in cash and marketable securities.
Although he think tank recognized the volatility of bitcoin compared to corporate bonds, argued that Not investing in the crypto asset could be riskier. “Microsoft can’t miss the next technology wave, and bitcoin represents that wave. Institutional adoption of bitcoin is growing, as evidenced by the fact that Microsoft’s second-largest shareholder, BlackRockoffers a BTC ETF to its clients,” said the NCPPR.
Michael Saylor and the impact on capital
During the presentation, Michael TaylorCEO of MicroStrategy and the largest institutional investor in bitcoin, stated that Microsoft lost around US$200,000 million in capital in the last five years by choosing to distribute dividends and execute share buyback programs instead of investing in bitcoin.
bitcoin cryptocurrencies
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Microsoft’s position and the vote
Despite this proposal, the NCPPR failed to convince Microsoft’s board of directors, which recommended that shareholders reject the initiative. In a document addressed to the Securities and Exchange Commission (SEC)Microsoft argued that the proposal was unnecessary and that bitcoin’s volatility was a significant obstacle to maintaining stable and predictable investments, crucial to the company’s liquidity and operational financing.
The company stressed having robust and well-structured processes to manage and diversify its treasury, guaranteeing long-term benefits for shareholders, and considered that a public evaluation such as the one requested was not justified.
It should be noted that the NCPPR made a similar proposal to amazonand the shareholders of that company must vote on the matter next April.
Source: Ambito
I am an author and journalist who has worked in the entertainment industry for over a decade. I currently work as a news editor at a major news website, and my focus is on covering the latest trends in entertainment. I also write occasional pieces for other outlets, and have authored two books about the entertainment industry.
