New York, Monday, October 28, 2024-Microsoft has urged shareholders to vote against a proposal to assess Bitcoin as a diversification tool at the upcoming annual meeting on December 10, according to a recent SEC filing.
Microsoft submitted a Schedule 14A form to the SEC, outlining proposals for its December 10th annual shareholder meeting. One proposal is to assess the possibility of investing in Bitcoin.
If approved, Microsoft would become one of the largest corporations to invest in cryptocurrency, surpassing industry players like Tesla and MicroStrategy. Microsoft, headquartered in Redmond, Washington, is the third-largest tech company in the U.S., boasting a market capitalization of $3.157 trillion.
The proposal, brought forth by the National Center for Public Policy Research, suggests Microsoft evaluate Bitcoin as a hedge against inflation and economic pressures.
Microsoft’s board, however, recommends rejecting the initiative, stating the company has previously evaluated cryptocurrency options, including Bitcoin.
The board emphasizes the need for “stable and predictable investments” for liquidity and operational purposes, a challenge given Bitcoin’s volatility. They argue that the company’s current approach already balances corporate treasury needs with prudent diversification strategies.
The National Center for Public Policy Research, a member of Project 2025, argues that Bitcoin is a strong inflation hedge, recommending firms allocate 1% of assets to cryptocurrency.
Key shareholders, including Vanguard and BlackRock, will cast their votes on December 10.
