The tech giant said it has previously evaluated Bitcoin and other cryptocurrencies.
Because it is more in line with their long-term interests, Microsoft is advising shareholders to turn down a think tank’s proposal to invest in Bitcoin.
The US tech giant stated in a filing Thursday that this evaluation is unnecessary, as their management “already carefully considers this topic.”
“Past evaluations have included Bitcoin and other cryptocurrencies among the options considered, and Microsoft continues to monitor trends and developments related to cryptocurrencies to inform future decision making,” the company said.
More: In additional materials filed today, Microsoft's board explains why it recommends a vote against this proposal: Because it's "unnecessary" since "Microsoft’s management already carefully considers this topic."
— MacroScope (@MacroScope17) October 24, 2024
Microsoft’s Global Treasury and Investment Services team… https://t.co/6d8iSvHuuB
As shareholders consider cryptocurrency volatility when making Treasury decisions, Microsoft emphasizes the need for stability.
Microsoft stated that the volatility of cryptocurrencies must be taken into account by its major shareholders, which include Vanguard, BlackRock, and State Street. When assessing investments for corporate treasuries, this factor is essential. For these treasuries to sustain operations and preserve liquidity, stability and predictability are essential.
“Microsoft has strong and appropriate processes in place to manage and diversify its corporate treasury for the long-term benefit of shareholders and this requested public assessment is unwarranted,” it further said.
Think Tank Cites MicroStrategy’s Stock Jump, Proposes Microsoft Add Bitcoin to Treasury
Microsoft was notified by the National Center for Public Policy Research of its intention to submit a proposal for Bitcoin diversification. This proposal will be presented on December 10 at the next annual meeting.
Using MicroStrategy as an example, the Center pointed out that this year, its Bitcoin investment strategy increased its stock performance by 300% over the tech giant’s. Even though MicroStrategy did a lot less business than Microsoft, this gain still happened.
“And they’re not alone. The institutional and corporate adoption of Bitcoin is becoming more commonplace,” it added. “Microsoft’s second largest shareholder, BlackRock, offers its clients a Bitcoin ETF.”
The think tank suggested companies consider investing at least 1% of assets in Bitcoin.
Earlier this year, Microsoft invested $1.5b in UAE-based AI company G42 to expand its AI presence.