Microsoft is facing a significant decision regarding potential investment in Bitcoin, with shareholders set to vote on the matter at the company's annual meeting on December 10, 2024. Here are the key points:
## Proposal and Board Recommendation
The National Center for Public Policy Research, a conservative think tank, has put forward a proposal titled "Assessment of Investing in Bitcoin" for Microsoft shareholders to consider[1][3]. This proposal suggests that Microsoft should evaluate investing in Bitcoin as a way to diversify its assets and hedge against inflation[3].
However, Microsoft's board of directors is recommending that shareholders vote against this proposal[1][3][5]. The board states that the company already "carefully considers this topic" and has strong processes in place to manage and diversify its corporate treasury[3][5].
## Microsoft's Stance
Microsoft claims that its Global Treasury and Investment Services team regularly evaluates a wide range of potential investments, including Bitcoin and other cryptocurrencies[5]. The company believes that a public assessment of Bitcoin investment is unwarranted at this time[1][3].
The tech giant cites volatility as a key factor in its decision, noting that corporate treasury applications require stable and predictable investments to ensure liquidity and operational funding[1].
## Potential Consequences
The National Center for Public Policy Research warns that Microsoft could face shareholder litigation if it decides against Bitcoin investment and the digital asset's value subsequently rises[3]. This highlights the potential legal risks associated with the decision.
## Broader Context
This decision comes amid growing institutional interest in Bitcoin. Some companies, like MicroStrategy, have seen significant gains from Bitcoin investments, with MicroStrategy's stock surging 250% over the past year compared to Microsoft's 16% increase[5].
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