(VOR News) – Microsoft is planning to have its annual shareholder meeting on December 10th, which is set to take place as the year draws to a conclusion.

The meeting is slated to take place simultaneously. According to a document that was distributed by the Securities and Exchange Commission on Thursday, a proposal that would increase shareholder value and diversify Microsoft’s assets by investing in Bitcoin is put on the list of “voting items” for shareholders this year.

Investing in Bitcoin would diversify Microsoft’s assets.

By encouraging shareholders to vote against it, the board of directors of the relevant firm is encouraging shareholders to vote against it. The proposal that is titled “Assessment of Investing in Bitcoin” suggests that Microsoft should investigate the possibility of diversifying its assets using Bitcoin, which is described as a “excellent, if not the best, hedge against inflation.”

A further implication of the plan is that Microsoft’s current investment in corporate bonds is just marginally higher than the rate of global inflation.

The concept posits that during inflationary periods, organizations ought to diversify their balance sheets with assets that gain more than bonds, as they may have a fiduciary obligation to do so, despite the short-term volatility of those assets. This is because bonds often undergo a greater pace of appreciation than other investment forms.

After the proposal, there is a section that is titled “Board Recommendation” that may be found underneath it. When it comes to this particular matter, the board of directors of Microsoft suggests to shareholders that they vote against the plan.

According to the paper, the board of directors contends that the company does not have to consider investing in Bitcoin since “Microsoft’s management has already carefully considered this topic.” This is the reason why the company does not have to consider investing in Bitcoin.

Microsoft has a Global Treasury and Investment Services team that routinely examines a vast array of potential investments in order to effectively diversify Microsoft’s assets and protect stockholders from inflation, as stated by the technology giant, which has Vanguard, BlackRock, and State Street as its largest shareholders.

This team is responsible for ensuring that Microsoft’s stockholders are protected from inflation.

The Microsoft report states that this group has assessed Bitcoin in the past.

According to the submission, it was said that “Microsoft has strong and appropriate processes in place to manage and diversify its corporate Treasury for the long-term benefit of shareholders,” along with the conclusion that “this requested public assessment is unwarranted.”

The National Center for Public Policy, which is a think tank that adheres to a conservative philosophy, was the one that presented the idea to the public.

Project 2025 is a policy project that is backed by the far right and has the objective of increasing the power of the president and imposing a conservative social order on the government of the next Republican president. One of the members of the advisory board for Project 2025 is from this particular group.

The proposal states that even if the firm ought to take into consideration investing in Bitcoin, it ought not to put the value of its shareholders at risk by spending an excessive portion of their assets in the cryptocurrency.

This is because the company would be putting the value of its shareholders at danger. The advice is that Microsoft should “evaluate the benefits of holding some, even just 1% of its assets in Bitcoin,” as stated by the organization.

At the same time that MicroStrategy, another big technology company, has reached a new high of $241 this year, this argument is being presented. This might be attributed to the fact that the company’s strategy shift toward investing in Bitcoin has been highly successful.

Starting from the year 2020, the company has gathered a total of 252,220 Bitcoins, which are estimated to be worth around $17 billion respectively.

Over the course of the past year, the stock of MicroStrategy has gained by around 250%, and the stock of Microsoft has increased by approximately 16%. Both corporations have witnessed an increase in the value of their stock.

SOURCE: FCN