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Microsoft Shareholders to Vote on Bold Bitcoin Investment Proposal

25.10.2024 14:30 1 min. read Alexander Zdravkov
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Microsoft Shareholders to Vote on Bold Bitcoin Investment Proposal

This December, Microsoft shareholders are set to vote on whether the company should diversify part of its assets into Bitcoin, an idea championed by the National Center for Public Policy Research (NCPPR).

While the board opposes the proposal, arguing it could disrupt Microsoft’s stable investment approach, NCPPR highlights Bitcoin’s inflation-resistant qualities and suggests that corporations allocate at least 1% of their assets to cryptocurrency.

The proposal underscores Bitcoin’s impressive performance, noting that it gained nearly 100% in a single year—far outpacing corporate bonds. NCPPR points to MicroStrategy as an example, whose stock surged 313% compared to Microsoft’s, largely due to its significant Bitcoin holdings.

Currently, Microsoft holds about $484 billion, mostly invested in government and corporate bonds that barely outpace inflation. While the board has previously reviewed Bitcoin as an option, it continues to favor traditional investments that offer consistent returns, concerned that cryptocurrency’s volatility could impact Microsoft’s operational cash flow.

This vote reflects a broader shift in traditional finance, where large institutions like BlackRock have begun offering Bitcoin ETFs. NCPPR argues that Bitcoin has proven to be a powerful inflation hedge, outperforming corporate bonds with a 414% gain over five years.

The upcoming vote, scheduled for December 10, could set a new precedent for how large companies like Microsoft approach crypto investments. NCPPR contends that corporations must look beyond conventional assets, even if these newer options come with more price volatility.

Alexander has been working in the crypto industry for three years, during which time he has established himself through his active participation in monitoring market dynamics and technological innovations. His interest in cryptocurrencies and new technologies is not just a professional commitment, but a deep personal passion. He follows the news in the sector daily, analyzes trends, and is excited about every new step in the development of blockchain solutions. His enthusiasm drives him to continuously learn and share knowledge, as he sees the future in digital finance and its role in global transformation.

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