In an unexpected turn of events, Microsoft shareholders have rejected a proposal to add Bitcoin to the company’s balance sheet, despite growing support for the cryptocurrency sector.
The proposal submitted by the National Center for Public Policy Research was aimed at protecting the company’s profits from the rapidly rising inflation. A key strategy was investment diversification, specifically into digital assets such as Bitcoin.
The proposal highlighted the poor performance of traditional assets such as US Treasuries and corporate bonds. Experts pointed to a substantial rise in Bitcoin's value, noting that it has risen by 99.7% this year alone and an impressive 414% over the past five years, significantly outperforming corporate bonds. In light of this, experts recommended adding the first cryptocurrency to Microsoft’s balance sheet as a hedge against inflation.
However, the company's board of directors voted against the proposal. The management stated that it is already conducting a thorough evaluation of investment assets, including cryptocurrencies. Preliminary assessments show that digital assets do not play a significant role in ensuring liquidity and operational funding. Given the volatility of cryptocurrencies, the board chose to prioritize stable and predictable investments for corporate treasury operations. Microsoft also mentioned that its global treasury and investment services team constantly monitors virtual currency trends to inform future decisions. The company emphasized that it maintains robust management and diversification processes aimed at maximizing long-term shareholder value.
Analysts believe that the rejection of BTC by both shareholders and the board indicates a cautious approach to cryptocurrencies. This approach aligns with the company’s investment strategy. Despite Bitcoin’s potential for higher returns, Microsoft prioritizes stability and risk management. However, when dealing with the first cryptocurrency, these factors are overshadowed by unpredictability.
