Microsoft shareholders voted against a resolution to add Bitcoin (BTC) to the company's balance sheet at the company's annual general meeting on December 10th.
The National Center for Public Policy Research (NCPPR), a pro-free-market think tank based in Washington, D.C., had proposed the resolution as a duty for corporations to provide value to shareholders through profit diversification.
General meeting of shareholders
NCPPR submitted a pre-recorded video outlining the proposal, which was played during the shareholder meeting. The video, which begins with the line, “Microsoft can't afford to miss the next wave of technology, and Bitcoin is that wave,” is filled with charts and numbers that show the potential value of owning BTC. It had been.
In making its case, the group promised that Bitcoin adoption would create trillions of dollars in value and “remove risk” from shareholders. This video echoes the sentiments expressed earlier in the resolution.
“Bitcoin adoption by institutions and businesses is becoming more common. BlackRock, Microsoft’s second-largest shareholder, offers a Bitcoin ETF to its customers.”
The proposal notes that Bitcoin is “more volatile” than corporate bonds and advises against owning “excessive amounts,” but not to jeopardize shareholder value by “ignoring Bitcoin completely.” also recommended.
Therefore, NCPPR recommended that 1% to 5% of the company's profits be used to purchase Bitcoin. The proposal formally requires Microsoft to “conduct an evaluation to determine whether diversifying the company's balance sheet by including Bitcoin is in the long-term best interests of shareholders.” requested.
Related: What will happen to the price of Bitcoin if Microsoft shareholders vote to buy BTC?
In a 14A filing with the U.S. Securities and Exchange Commission (SEC), the Microsoft board formally recommended against the proposal. In a statement, the board called the proposal “unnecessary” and said the company was “already giving careful consideration to this matter.”
“As the proposal itself points out, volatility should be considered when evaluating cryptocurrency investments for corporate finance applications that require stable and predictable investments to ensure liquidity and operating capital. It is an element.”
Are you relying too much on FOMO?
Many of the pitches seem to be based on the idea of ”fear of missing out” or “FOMO.” The proposal cites both MicroStrategy and BlackRock's Bitcoin adoption as motivating factors. The NCPPR provides similar guidance to Amazon.
However, Microsoft's board did not budge before the vote. “Microsoft has strong and appropriate processes in place to manage and diversify its corporate finances for the long-term benefit of its shareholders.” I wrote “And this requested public evaluation is unwarranted,” the board said in the aforementioned SEC filing.
Related: Buy Top Forever: MicroStrategy Bags 21.5,000 Bitcoins at Peak Price
In its filing, the board acknowledged that MicroStrategy's business is similar to its own, but declined to expand the comparison beyond the companies' different approaches to the fast-growing crypto market.
According to preliminary results, shareholders voted against the resolution, upholding the board's guidance on Bitcoin adoption.
magazine: 'Nomie Degens' goes all-in on crypto tokens to reap rewards for sports fans
