Even though Bitcoin surged after Trump was elected president, Microsoft, a tech giant with a leading market cap in the U.S. stock market, has not considered allocating Bitcoin.
On Tuesday, December 10, Eastern Time, Microsoft shareholders voted down a proposal regarding the allocation of Bitcoin, arguing that Microsoft's existing strategy is already evaluating various investable assets, including Bitcoin, as part of Microsoft's broader investment framework.
The proposal mentioned is titled 'Assessment of Investment in Bitcoin,' submitted by a conservative think tank in Washington, the National Center for Public Policy Research (NCPPR). The think tank advocates that Bitcoin is a 'good hedge against inflation, even if it is not the best.'
NCPPR's proposal defines Bitcoin as a responsibility for companies to provide value to shareholders through profit diversification, with the summary video beginning by pointing out:
Microsoft cannot miss the next wave of technology, and Bitcoin is part of that wave.
NCPPR believes that adopting Bitcoin would create trillions of dollars in value and eliminate risks for shareholders. The video also echoed the content of the proposal text: the adoption of Bitcoin by institutions and enterprises is becoming increasingly common, with BlackRock, Microsoft's second-largest shareholder, offering Bitcoin spot ETFs to clients.
NCPPR's proposal argues that Bitcoin is 'more volatile' than corporate bonds, thus suggesting not to hold 'too much,' but at the same time recommending not to let shareholder value be at risk by 'completely ignoring Bitcoin.' Therefore, it suggests that Microsoft use 1% to 5% of its profits to purchase Bitcoin. The proposal formally requests Microsoft 'to conduct an assessment to determine whether diversifying the corporate balance sheet by including Bitcoin is in the best long-term interest of shareholders.'
After Microsoft shareholders voted down the proposal to hold Bitcoin, the Bitcoin price fell back below $95,000 during Tuesday's U.S. stock market session. According to CoinMarketCap, the Bitcoin trading price dropped below $94,500 during the U.S. stock market's midday session, approaching the day's low recorded earlier in Asia on Tuesday. This represented a decline of over $3,800, nearly 4%, from the day's high of over $98,200 in the morning session.
Microsoft shareholders voted down a proposal to reduce AI risks such as misinformation and data privacy breaches.
On Tuesday, Microsoft shareholders also voted down a proposal regarding risks related to artificial intelligence (AI). The proposal requested that Microsoft reduce AI risks ranging from misinformation to data privacy breaches and disclose such risks.
The proposal's submitter—the conservative nonprofit organization National Legal and Policy Center (NLPC)—believes shareholders 'should pay attention to Microsoft's record on data ethics' and mentions that Open AI, the AI unicorn that Microsoft heavily invests in, has been accused of stealing users' personal information without notice or permission.
The AI proposal presented this Tuesday shows concerns that Microsoft developers might use data from unethical or illegal sources to train generative AI, such as personal information, copyrighted works, or proprietary business information provided by users.
Comments suggest that the proposal facing Microsoft shareholders reflects investors' demand for companies to consider developing new transparency and ethical policies for the development and use of AI, including generative AI, in the face of rapidly evolving AI technology.
