Tech giant Microsoft plans to hold a shareholder vote in December on investing in Bitcoin (BTC), despite recommendations against it.
In a new filing with the U.S. Securities and Exchange Commission (SEC), Microsoft's board of directors recommends voting against considering investing in the largest cryptocurrency by market cap.
In an official statement, the board of directors notes that the offer itself is not necessary, as the company's management has already carefully considered whether to invest in the crypto king or not.
“Microsoft teams evaluate a wide range of investment assets to fund Microsoft’s ongoing operations, including assets that are expected to provide diversification and inflation protection and reduce the risk of significant economic losses from rising interest rates.
Bitcoin and other cryptocurrencies have been considered in past assessments, and Microsoft continues to monitor cryptocurrency trends and developments to inform future decisions.
As noted in the proposal itself, volatility is a factor to consider when evaluating cryptocurrency investments for corporate treasury applications that require stable and predictable investments to provide liquidity and operational funding.”
The board further stated that since the matter had already been considered, asking shareholders to vote on it was "unreasonable".
In another statement, proponents of the idea say large corporations should consider diversifying their portfolios as a way to combat inflation.
"As of March 31, 2024, Microsoft had total assets of $484 billion, most of which are in U.S. government securities and corporate bonds that barely beat inflation (assuming the CPI is accurate, which it is not, so bond yields are actually below the true inflation rate).
So in such inflationary times, corporations should - and perhaps have a fiduciary duty - to consider diversifying their balance sheets into assets that appreciate more than bonds, even if those assets are more volatile in the short term."
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