Microsoft Board Opposes Proposal to Hold Bitcoin on Balance Sheet
This is a segment from the Forward Guidance newsletter.
Microsoft and Bitcoin
A recent filing revealed that the National Center for Public Policy Research plans to propose at Microsoft’s annual meeting that the company consider diversifying its balance sheet. This proposal highlights the corporation's "fiduciary duty" to maximize shareholder value and suggests that Microsoft, with $484 billion in assets as of March 31, should explore holding bitcoin alongside its current US government securities and corporate bonds.
The proposal acknowledges BTC's volatility but argues that companies should assess the advantages of allocating even a small percentage of their assets to bitcoin.
MicroStrategy is mentioned as a benchmark, with 252,220 BTC held as of last month. MicroStrategy's stock increased by 249% this year, while Microsoft's rose by 16%.
The proposal is unlikely to pass. Microsoft’s Board of Directors expressed opposition, citing the need for stable investments for liquidity and operational funding. The board stated that it has already evaluated cryptocurrencies and continues to monitor trends to guide future decisions, indicating that the company remains open to considering bitcoin.