According to a regulatory filing submitted on October 24, Microsoft shareholders will vote on the proposal at the annual meeting at the end of the year to assess whether BTC can be a potential corporate investment.
This proposal was submitted by the Shareholder Advisory Committee, requesting a detailed assessment of the potential role of flagship Crypto assets in Microsoft's financial operations.
However, the board recommends opposing this move, stating that its financial department has evaluated various assets, including Crypto assets like BTC.
The board highlighted BTC's volatility and believes that the company's current processes can ensure financial stability without further review.
The board emphasized the importance of the company's financial stability in its opposition statement, noting that highly volatile assets like BTC are not suitable for ensuring liquidity and operational funding.
Microsoft's global treasury and investment services team has evaluated various assets, including those capable of providing diversification and inflation protection.
The team has previously considered BTC and other digital assets as part of its risk management process and will continue to monitor market trends in this area.
The annual shareholder meeting on December 10 will also address other important topics, such as governance and executive compensation, but as discussions around corporate adoption of Crypto assets intensify, the BTC proposal has become the focal point.
Microsoft has historically taken a conservative approach to financial management, investing large cash reserves in low-risk assets like bonds.
The board's opposition to BTC investment reflects a broader strategy of prioritizing stability over potential high but unpredictable returns.
Historically, BTC's price has been highly volatile, making it a high-risk asset for corporate finance departments that typically prioritize liquidity and stability.
For example, BTC surpassed $69,000 in 2021 but has fallen below $30,000 multiple times in the following years.
This volatility poses significant risks to companies managing operational expenditures or making long-term investments.
Despite the risks, institutional interest in BTC continues to rise. Hedge funds and financial institutions are increasingly incorporating Crypto assets into their portfolios.
However, due to operational risks from high volatility, an unpredictable regulatory environment, and concerns over cybersecurity, many companies remain cautious.
Some companies have embraced Crypto assets, while others have adopted a 'wait-and-see' approach.
The evolving technology behind Crypto assets, including advancements in blockchain technology, has generated greater interest in its applications, but uncertainties in market applications and regulation mean that companies like Microsoft are still on the sidelines.
Author: Blockchain Knight; from the open content platform 'Dededehao' by Chain Dedede. This article represents the author's views and does not reflect the official position of Chain Dedede. For articles on 'Dededehao', the originality and content authenticity are guaranteed by the contributor. If legal consequences arise from plagiarism or forgery, the contributor is responsible. If there are issues with content on the Dededehao platform, please supervise, and if confirmed, the platform will take it offline immediately. For content issues, please contact WeChat: chaindd123.
