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Key Points: Microsoft shareholders voted against a proposal to invest a portion of company profits in Bitcoin. The Microsoft Bitcoin investment proposal argued that Bitcoin could serve as an inflation hedge and boost shareholder value. Shareholders at Microsoft’s annual shareholder meeting rejected a proposal to investigate the possibility of adding Bitcoin to the company’s balance sheet. Read more: Microsoft Board Rejects Bitcoin Investment Proposal Ahead of December Shareholder Meeting  Microsoft Bitcoin Investment Proposal Was Opposed The Microsoft Bitcoin investment proposal, put forth by the NCPPR, suggested investing a portion of 1 to 5 per cent of its profits as a means of diversification into Bitcoin. Proponents argued that the potential of Bitcoin as a hedge against inflation and the performance of Bitcoin against other investment avenues, like corporate bonds, should be taken seriously. Michael Saylor, MicroStrategy’s co-founder and loud Bitcoin proponent, supported the proposal, citing its potential to raise Microsoft’s stock and align with progressive financial strategies. Saylor, speaking on behalf of the Free Enterprise Project, referred to Bitcoin’s fast-growing acceptance among institutional investors, which already includes BlackRock, the second-largest shareholder in Microsoft. The board was against the proposition based on Bitcoin’s volatility and the company’s existing mode for the evaluation of any investment. Board members said that Microsoft’s financial strategy focuses on stable and less speculative options, which best suit shareholder interests. Corporate Strategy Shies Away from Cryptocurrency Volatility Despite the rejection, the Microsoft Bitcoin investment proposal sparked debate about cryptocurrency’s role in corporate finance. Proponents argued that Microsoft risked falling behind competitors embracing digital assets, while opponents emphasized the need for caution given Bitcoin’s price fluctuations. That’s against the backdrop of Bitcoin, which recently breached the $100,000 level and continues to receive endorsements from some global personalities. MicroStrategy is the biggest corporate investor in Bitcoin, with huge holdings…

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Filed under: News - @ December 11, 2024 2:24 am