In a recent SEC filing, Microsoft announced that its shareholders will vote on a proposal to consider investing in Bitcoin at the company’s annual meeting on December 10. This proposal, put forth by the National Center for Public Policy Research (NCPPR), suggests that Microsoft diversify its cash reserves—currently around $484 billion, largely held in U.S. Treasuries and corporate bonds—by allocating a portion to Bitcoin as a hedge against inflation.
The NCPPR argues that in times of sustained inflation, companies should consider alternative assets that may offer better protection against devaluation compared to traditional bonds. They cite MicroStrategy’s Bitcoin strategy as an example, which has led the smaller company to outperform Microsoft by 313% since 2020, despite its size difference. The think tank proposes that Microsoft allocate at least 1% of its cash to Bitcoin to preserve long-term shareholder value.
However, Microsoft’s board of directors has recommended a “no” vote on the proposal, citing Bitcoin’s volatility and the company’s current investment strategy. According to the board, Microsoft’s Global Treasury and Investment Services team already assesses a wide range of assets, including Bitcoin, to ensure ongoing operational funding. The board noted, “Microsoft continues to monitor trends and developments related to cryptocurrencies to inform future decision-making.”
While the proposal’s goal is to initiate a public evaluation of Bitcoin as a balance sheet asset, Microsoft’s management maintains that its established investment protocols are sufficient, rendering the additional scrutiny suggested by NCPPR unnecessary. The board’s response underscores Microsoft’s commitment to cautious, diversified investment strategies that prioritize stability and long-term shareholder benefit over speculative investments.
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