What happened?
Microsoft shareholders recently voted against incorporating Bitcoin into Microsoft's asset allocation during the annual meeting.
This proposal was put forward by the American free-market think tank National Center for Public Policy Research (NCPPR), advocating that Microsoft should invest 1% of its total assets in Bitcoin as a hedge against inflation.
Microsoft's board has clearly expressed opposition, pointing out that the volatility of cryptocurrencies like Bitcoin is too great to serve as a stable investment tool to secure the company's liquidity and operating funds.
Microsoft shareholders voted against incorporating Bitcoin into the company's assets
This proposal, put forward by the American free-market think tank National Center for Public Policy Research (NCPPR), suggests that Microsoft should invest 1% of its total assets in Bitcoin as a hedge against inflation.
According to the latest data from Bloomberg, Microsoft's total cash and liquid securities amount to $78.4 billion.
However, despite strong recommendations from Bitcoin advocates like MicroStrategy Executive Chairman Michael Saylor, the Microsoft board firmly believes that Bitcoin's high volatility cannot meet the needs of stable corporate fund management. As a result, shareholders chose to support the board's position and oppose incorporating Bitcoin into the company's capital allocation.
Ultimately, the voting results from Microsoft shareholders indicated that this proposal was not passed, which means that Microsoft will not join the ranks of companies like MicroStrategy in incorporating Bitcoin as part of its corporate capital in the near future.
This decision also shows that although the return potential of Bitcoin is enormous, for companies like Microsoft that pursue stability, cryptocurrencies remain a too risky choice. Many netizens commented that Microsoft made a wrong decision and will definitely regret it in the future.
Supporters behind the proposal: Michael Saylor and the potential of Bitcoin
The main content of this proposal revolves around the mentality of 'fear of missing out' or 'FOMO,' using MicroStrategy and BlackRock's adoption of Bitcoin as motivating factors.
One of the main supporters of this proposal is MicroStrategy Executive Chairman Michael Saylor.
He prepared a 3-minute presentation for the Microsoft board before the meeting, hoping to persuade shareholders to support incorporating Bitcoin into the asset allocation. Saylor pointed out that Microsoft has returned $200 billion in capital through dividends and stock buybacks over the past five years, but if Microsoft were to invest in Bitcoin early, it could increase its market value by up to $5 trillion.
"Microsoft cannot miss the next wave of technological advancement, and Bitcoin is that wave," Saylor said. While Saylor instilled hope in some shareholders about Bitcoin's potential, the Microsoft board remains highly cautious regarding this proposal.
The Microsoft board acknowledges that MicroStrategy's operational approach is similar to its own business, but the board believes that Bitcoin's volatility would pose unnecessary risks for corporate fund management, and Microsoft's existing investment strategy is already capable of safeguarding shareholders' long-term interests. Therefore, the board maintains its position of not incorporating Bitcoin into the company's assets.
The NCPPR think tank also submitted a similar proposal to Amazon on December 8, which will be discussed at the company's shareholder meeting in April 2025.
References: Cointelegraph, Coindesk
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