Microsoft Declines Bitcoin Reserve Proposal, Justin Sun Shares Cheeky Take

Shareholders of tech giant Microsoft Corp. have voted against a proposal by the National Center for Public Policy Research (NCPPR) to add Bitcoin to the company’s balance sheet during its annual meeting.

Ahead of the vote, Microsoft’s board of directors opposed the resolution, citing concerns over Bitcoin’s perceived volatility as a negative factor.

The Washington-based conservative think tank argued that adding Bitcoin to the Microsoft balance sheet would be a corporate responsibility to diversify profits and create value for shareholders.

The group emphasized that adopting Bitcoin would create trillions in value and “strip away risk” from shareholders.

In the proposal, the NCPPR acknowledged that Bitcoin is “more volatile” than corporate bonds, so it cautioned against holding excessive amounts. However, the group also warned against neglecting Bitcoin entirely, urging that doing so could risk shareholder value.

Consequently, the group suggested that Microsoft allocate between 1% and 5% of its profits toward purchasing Bitcoin. The proposal formally called on the company to “conduct an assessment to determine if diversifying the Company’s balance sheet by including Bitcoin is in the best long-term interests of shareholders.”

Microsoft’s board officially opposed the proposal in a 14A filing with the U.S. Securities and Exchange Commission (SEC). They said in the filing that they deemed the proposal “unnecessary.”

“As the proposal itself notes, volatility is a factor to consider in evaluating cryptocurrency investments for corporate treasury applications that require stable and predictable investments to ensure liquidity and operational funding,” the board stated.

Earlier this month, Microsoft’s board of directors heard a three-minute pitch from Bitcoin advocate and MicroStrategy CEO Michael Saylor, who claimed that the company could potentially add nearly $5 trillion to its market capitalization by fully embracing Bitcoin.

“Microsoft can’t afford to miss the next technology wave, and Bitcoin is that wave,” Saylor said.

In the filing, The Microsoft board acknowledged that its operations share some similarities with those of MicroStrategy, particularly in their involvement with technology and innovation.

However, the board made it clear that it did not wish to extend the comparison beyond the differing approaches the two companies have taken toward the rapidly growing cryptocurrency market.

Justin Sun’s Reaction

In a post on X, Justin Sun, the founder of the cryptocurrency platform TRON, reacted to news of Microsoft’s decision to vote against the proposal.

Sun made a playful remark suggesting that Bitcoin’s current price might not be high enough for Microsoft to consider it as a reserve asset. He further teased, recommending that the company consider purchasing Bitcoin once its price hits $1 million.

Sun’s reaction likely reflects his belief that adopting a Bitcoin reserve strategy would be a beneficial move for companies. The entrepreneur recently hinted at a potential initiative that could involve adapting MicroStrategy’s cryptocurrency method for TRON.

MicroStrategy’s Bitcoin reserve marked a bold move in corporate finance. The strategy was driven by a belief that Bitcoin, as a decentralized and inflation-resistant asset, would serve as a superior store of value compared to traditional currencies, especially in an era of increasing fiat currency debasement.

As of late 2024, the company holds over 420,000 Bitcoin, with a total market value worth $42 billion.

Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

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