Good day everyone,
I hope you are all having a good day, welcome to CryptoGod-1's blog on all things crypto. In this post I will be looking at how Microsoft wants its shareholder to vote no when it comes to a Bitcoin investment plan.
Microsoft wants a NO to Bitcoin Investment
The tech giant company Microsoft have previously said they evaluated Bitcoin and other cryptocurrencies and are urging their shareholders to reject a think tank’s proposal to invest in Bitcoin. They have stated this aligns better with their long-term interests. The United States company stating in a filing last Thursday that this evaluation is unnecessary and that their management has “already carefully considered this topic.” They went on to state:
“Past evaluations have included Bitcoin and other cryptocurrencies among the options considered, and Microsoft continues to monitor trends and developments related to cryptocurrencies to inform future decision making.”
The major shareholders of Microsoft, which include Vanguard, BlackRock, and State Street, will have to consider things such as cryptocurrency’s volatility, according to the company. They consider this a factor which is crucial when it comes to evaluating investments for corporate treasuries. The treasuries rely on stability and predictability to maintain liquidity and support operations, and this makes cryptocurrency a more risky investment asset. The company noted:
“Microsoft has strong and appropriate processes in place to manage and diversify its corporate treasury for the long-term benefit of shareholders and this requested public assessment is unwarranted.”
The plan was given to Microsoft by 'The National Center for Public Policy Research' regarding diversification through investing in Bitcoin. The proposal will be introduced at the upcoming annual meeting on the 10th of December. It was also highlighted by the Center that MicroStrategy is a prime example of a company which used Bitcoin as an investment strategy to boost its stock performance by over 300% throughout the year. This happened despite MicroStrategy engaging in significantly less business activity than Microsoft. The report added:
“And they’re not alone. The institutional and corporate adoption of Bitcoin is becoming more commonplace. Microsoft’s second largest shareholder, BlackRock, offers its clients a Bitcoin ETF.”
It was suggested by the think tank that companies should consider investing at least 1% of assets in Bitcoin.
Have a great day.
Peace. CryptoGod-1.
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