Microsoft Shareholders Reject Bitcoin Proposal

On the day of Microsoft (NASDAQ:MSFT)'s annual meeting, shareholders voted against a proposal aimed at considering Bitcoin for the company's balance sheet.

The proposal, presented by the National Center for Public Policy Research, argued that due to rampant inflation, corporations should safeguard profits from debasement through diversified investments, including Bitcoin.

Key highlights of the proposal included:
– Traditional assets like US government securities and corporate bonds have underperformed compared to Bitcoin.
– Bitcoin experienced a 99.7% price increase over the past year and 414% over five years, significantly outperforming corporate bonds.
– The recommendation was to evaluate Bitcoin’s inclusion to protect shareholder value against inflation.

Microsoft's board opposed this proposal, stating:
– Management already evaluates investable assets, including cryptocurrencies, to maintain liquidity and operational funding.
– Emphasis is placed on stable and predictable investments for corporate treasury roles due to cryptocurrency volatility.
– The Global Treasury and Investment Services team constantly monitors cryptocurrency trends to guide future decisions.
– Microsoft employs robust processes for treasury management, focusing on long-term shareholder benefits, rendering the public assessment unnecessary.

The rejection signifies that both Microsoft shareholders and the board are cautious about integrating cryptocurrency into their investments. Despite the allure of higher returns, stability and risk management remain prioritized in asset allocation decisions.

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