Microsoft Rejects Bitcoin Investment: Here's the Leaked Information

Bittime - Microsoft took a surprisingly important decision at its recent annual meeting. The tech giant's shareholders voted to reject a proposal that proposed that the company allocate a portion of its assets to Bitcoin. 

The proposal, submitted by National Center for Public Policy Research (NCPPR), suggests that Microsoft invest between 1% to 5% of the funds it has to buy Bitcoin. This is a protective measure against inflation.

This decision sparked various reactions, especially from crypto entrepreneurs and investors. They view Bitcoin as a potential hedge in the face of economic uncertainty. 

However, although there are many parties who support the idea, including Michael Saylor, president of MicroStrategy who is also known as a supporter of Bitcoin, the final decision remains in the hands of Microsoft's shareholders and board of directors who chose to reject the proposal.

Reasons Behind Microsoft's Shareholder Decision

Source: Crypto Economy

The proposal to invest in Bitcoin is not trivial. Remember, Microsoft is one of the largest technology companies in the world with enormous financial resources. 

The NCPPR, which put forward this proposal, sees Bitcoin as a tool to diversify corporate asset portfolios and as a hedge against inflation. 

In a letter delivered to Securities and Exchange Commission (SEC), NCPPR highlighted that Bitcoin is increasingly being adopted by large institutions. This includes BlackRock, which is Microsoft's second largest shareholder, which has launched a Bitcoin Exchange-Traded Fund (ETF).

Read also: Why Bitcoin and Altcoin Prices Are Down Today

However, despite these trends, the proposal highlights the risk of Bitcoin's higher volatility compared to traditional assets such as corporate bonds. 

Michael Saylor, through his company MicroStrategy, took part in the meeting in hopes of convincing Microsoft shareholders of Bitcoin's long-term benefits. He presented Bitcoin as an effective means of storing value, especially in the face of global economic turmoil.

However, even though Saylor made strong arguments, Microsoft's board of directors remained firm in its stance. They stated that although they recognize Bitcoin's potential, the company has not seen the need to allocate funds to the crypto asset. 

The board believes that Bitcoin's high volatility potentially adds undesirable risks to Microsoft's financial stability.

Why is Microsoft Rejecting Bitcoin?

Microsoft, despite owning shares of BlackRock which is already involved in the Bitcoin market, chose not to rush into investing in the cryptocurrency. 

In an official statement sent to the SEC, the company emphasized that they have carried out an in-depth evaluation regarding investing in cryptocurrencies, but to date, they have not seen sufficient reasons to include Bitcoin in their investment strategy.

Read also: 3 Companies that Buy Bitcoin Even though the Price is Correcting

Microsoft prefers to continue to focus on its existing asset diversification strategy, which includes various investments in technology and other assets that are considered more stable. 

As a technology company, Microsoft has indeed been open to the use of blockchain technology and even utilizes this innovation in several fields, but investing in Bitcoin is a different step, with higher risks.

Some people consider this decision to be quite wise, considering the very sharp fluctuations in Bitcoin prices in recent years. From reaching a price of more than $60,000 (around IDR 954 million) per BTC at its peak, to experiencing a significant decline that made many investors worried. 

This decision shows that although Bitcoin offers huge profit potential, the risks associated with it cannot be ignored either.

What About the Future of Bitcoin in the Eyes of Big Companies?

Microsoft's decision not to invest in Bitcoin certainly does not mean that the trend of Bitcoin adoption by large companies will stop. In contrast, several other companies such as Tesla, Square, and MicroStrategy themselves have shown strong interest in this crypto asset. 

In fact, several other companies are considering adopting Bitcoin as part of their hedging strategies.

However, it is important to note that not all companies share this view. Companies like Microsoft, which have a strong focus on technology and long-term innovation, may be more cautious about adopting Bitcoin, given the volatility that could affect the stability of their business.

Read also: MicroStrategy CEO Urges US to "Sell Gold, Buy Bitcoin"

Meanwhile, crypto observers continue to believe that despite this rejection, Bitcoin will remain an integral part of the global financial ecosystem. 

As time goes on, more large companies will likely start to embrace Bitcoin, especially if blockchain adoption continues to grow and the potential benefits become more evident.

FAQs About Bitcoin

What is Bitcoin?

Bitcoin is a consensus network that enables new payment systems and completely digital money. Bitcoin is the first decentralized peer-to-peer payment network supported by its users without a central authority or intermediary. 

Who Created Bitcoin?

The first Bitcoin specifications and proof of concept were published in 2009 on a cryptography mailing list by Satoshi Nakamoto. Satoshi left the project at the end of 2010 without revealing much about himself. Since then, the community has grown exponentially with many developers working on Bitcoin.

Who Controls the Bitcoin Network?

No one owns the Bitcoin network just as no one owns the technology behind email. Bitcoin is controlled by all Bitcoin users around the world. 

How to Buy Crypto on Bittime

Want to trade sell buy Bitcoins and crypto investment easily? Bittime is here to help! As an Indonesian crypto exchange officially registered with Bappebti, Bittime ensures every transaction is safe and fast.

Start with registration and identity verification, then make a minimum deposit of IDR 10,000. After that, you can immediately buy your favorite digital assets!

Check the exchange rate BTC to IDR, ETH to IDR, SOL to IDR and other crypto assets to find out today's crypto market trends in real-time on Bittime.

Also, visit the Bittime Blog for interesting updates and educational information about the crypto world. Find reliable articles about Web3, blockchain technology, and digital asset investment tips designed to enrich your crypto knowledge.

Reference 

Crypto Economy, Breaking! Microsoft Rejects Bitcoin: Shareholders Say No to BTC, accessed December 11, 2024.

Crypto Briefing, Microsoft shareholders reject proposal to add Bitcoin to balance sheet, accessed December 11, 2024.

Author: Y