Tech giant Microsoft is planning a shareholder vote on a possible investment in Bitcoin (BTC) in December, despite its recommendation against the currency.
In a new filing with the U.S. Securities and Exchange Commission (SEC), Microsoft's board of directors recommends voting against the idea of investing in the top market-capitalized crypto asset.
In a public statement, the board said that the proposal itself was not necessary as the company's management has already carefully considered whether to invest in the crypto tycoon.
“Microsoft's [teams] We have evaluated a wide range of investable assets to fund Microsoft's ongoing operations, including assets that are expected to provide diversification and inflation protection and reduce the risk of significant economic loss from rising interest rates. Masu.
Past evaluations have included Bitcoin and other cryptocurrencies among the options considered, and Microsoft monitors trends and developments related to cryptocurrencies to inform future decisions. Continuing.
As the proposal itself points out, volatility is a factor to consider when evaluating cryptocurrency investments for corporate finance applications that require stable and predictable investments to ensure liquidity and operational capital. is. ”
The board also said it would be “unreasonable” to ask shareholders to vote on the matter since it had already been investigated.
Supporters of the idea said in a separate statement that large companies should try to diversify their portfolios as a way to combat inflation.
“As of March 31, 2024, Microsoft Corporation had total assets of $484 billion, much of it in U.S. government and corporate debt, barely above the rate of inflation (assuming the CPI is accurate). This is not the case (so bond yields are actually lower than the true rate of inflation).
Therefore, in these times of inflation, companies should consider diversifying their balance sheets with assets that appreciate more than bonds, even if the assets are more volatile in the short term, and perhaps We also have a fiduciary responsibility to do so. ”
At the time of writing, Bitcoin was trading at $66,799, down more than 2% in the past 24 hours.
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