Microsoft’s decision to not add Bitcoin to its balance sheet was a great idea for both
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Microsoft’s decision to steer clear of Bitcoin and keep its balance sheet traditional wasn’t just calculated, it was ruthless in its precision. On December 10, the tech giant’s shareholders torched a proposal to sink 1% of its $78 billion cash reserves into Bitcoin. That would’ve been roughly $784 million—a small chunk of cash for Microsoft but a significant statement for the crypto market. The plan, pitched by the National Center for Public Policy Research, called Bitcoin a hedge against inflation, a weapon to fight the brutal 5% inflation rate that’s been squeezing the U.S. economy for years. Microsoft’s board didn’t blink. They called Bitcoin what it is: volatile. They made it clear that corporate cash isn’t for speculation—it’s for stability. Shareholders backed them up with a resounding “no.” As they should’ve. Bitcoin is too risky for Microsoft’s playbook The proposal faced resistance from the start. Bitcoin’s price swings are legendary. It can double your investment or cut it in half within weeks. That’s not a risk Microsoft wants to take with its treasury. The company needs liquidity, predictable returns, and cash reserves ready to fuel operations — not gamble. Microsoft’s leadership, from the boardroom to the shareholders, didn’t buy into the hype of Bitcoin as “digital gold.” Sure, Bitcoin delivered jaw-dropping returns—nearly doubling in value over the past year and up over 400% in five years—but that’s not enough to sway a company whose DNA is built on calculated growth and risk management. And let’s not forget the context. The corporate world has been watching Bitcoin skeptically. Even as some companies like MicroStrategy and Tesla jumped on the Bitcoin bandwagon, others stayed back, wary of regulatory pitfalls and unpredictable market swings. For Microsoft, the choice was less about being revolutionary and more about protecting shareholder interests. The fallout: Bitcoin dips,…
Filed under: News - @ December 14, 2024 7:16 pm