Key takeaways
- Microsoft shareholders to vote on Bitcoin proposal as Michael Saylor presents multi-billion dollar opportunity.
- Microsoft Board Pushes Back Bitcoin Investment Proposal, Urging Shareholders to Vote Against
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MicroStrategy CEO Michael Saylor sent an article on X to Microsoft CEO Satya Nadella earlier today, suggesting that if Microsoft wants to add another trillion dollars in shareholder value, it should consider adding Bitcoin to its cash flow.
Hey @SatyaNadellaif you want to make the next trillion dollars for $MSFT shareholders, call me. pic.twitter.com/NPnVvL7Wmj
– Michael Saylor⚡️ (@saylor) October 25, 2024
Saylor’s comment follows Microsoft’s latest comment SEC Filingwhich outlines a shareholder proposal titled “Bitcoin Investment Evaluation” that will be voted on at the company’s annual meeting in December.
Building on recent performance, MicroStrategy’s Bitcoin-rich portfolio has helped its shares outperform Microsoft’s by 313% this year, despite the company’s relatively smaller size in the technology sector.
Microsoft acknowledged this in its report, highlighting the significant gains some companies have made from holding Bitcoin.
Despite recognizing Bitcoin’s recent outperformance, Microsoft’s board of directors has advocated that shareholders vote against this proposal.
In the filing, the board said there was no need to conduct an evaluation of Bitcoin investments, emphasizing that Microsoft management is “already carefully studying this topic.”
The board highlighted that Microsoft’s Global Treasury and Investment Services team regularly evaluates various assets, focusing on maintaining liquidity and minimizing economic risks while securing long-term gains. for shareholders.
Although Microsoft acknowledges that Bitcoin has been considered in previous valuations, its portfolio is currently dominated by U.S. government securities and corporate bonds, a strategy aimed at stability and steady returns.
Microsoft’s caution aligns with the volatility associated with Bitcoin, a point highlighted in the filing. They noted that assets for corporate treasury applications must be predictable and stable to effectively support operations.
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