Microsoft to Discuss Bitcoin Investment Proposal at Shareholders Meeting

- Microsoft Board Opposes Bitcoin Investment Proposal - Continuously Monitoring Cryptocurrency Trends [Unblock Media] Microsoft recently received a proposal to consider investing in Bitcoin during its annual general meeting. The board expressed opposition to the proposal but stated that it is continuously monitoring trends related to cryptocurrencies. The shareholders' meeting is scheduled for December 10, and the proposal to "consider Bitcoin investment" is included. Shareholders argue that Microsoft should invest part of its cash assets in Bitcoin. The case of MicroStrategy, where stock prices increased by 313% compared to Microsoft through Bitcoin investments, is being highlighted. The Microsoft board has previously evaluated Bitcoin and other cryptocurrencies as financial investment options and mentioned that they are monitoring trends to reflect in future investment decisions. This indicates that Microsoft is carefully considering the volatility and stability of cryptocurrencies. Over the past four years, the average inflation rate in the U.S. was 5.03%, peaking at 9.1% in June 2022 according to the Consumer Price Index. This suggests that company assets need to rise at least this much to avoid losses. As of March 31, 2024, Microsoft's total assets amounted to $484 billion, primarily composed of U.S. Treasury bonds and corporate bonds. This is considerably large compared to other major corporations. However, these assets have not kept pace with inflation. On the other hand, Bitcoin surged 99.7% year-over-year as of June 25, 2024, surpassing corporate bond yields by approximately 94%. Over the past five years, Bitcoin has risen 414%, outperforming corporate bonds by about 411%. Although Bitcoin is a highly volatile asset, it can be an excellent means of hedging against inflation. Shareholders argue that holding at least 1% of assets in Bitcoin would protect shareholder value. However, the Microsoft board maintains its opposition to this shareholder proposal. The board stated that Microsoft’s Global Finance and Investment Services team has already carefully reviewed a variety of investment assets, including those considered for inflation protection and asset diversification. In this context, the documents related to Microsoft's Bitcoin investment proposal at the shareholders' meeting reveal diverse opinions. Still, it is evident that Microsoft has evaluated Bitcoin and other cryptocurrencies as financial investment targets and continues to monitor their potential.