Microsoft shareholders reject Bitcoin proposal, citing volatility and need for stable treasury management.
Michael Saylor’s Bitcoin pitch to Microsoft falls flat, firm sticks to long-term conservative treasury strategy.
Bitcoin adoption grows, but Microsoft remains cautious, aligning with the board's focus on predictable investments.
Microsoft shareholders have rejected the implementation of the Bitcoin balance during the General Annual Meeting on 10 December. The National Center for Public Policy Research (NCPPR) proposed the initiative stressing on the importance of Bitcoins as an impressive asset. However, shareholders sided with Microsoft’s board, which dismissed the proposal as unnecessary and risky.
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The NCPPR supported Bitcoin as a way to diversify revenue and increase the stock’s value. The pre-recorded video of the group emphasized the adoption of cryptocurrencies by institutional investors. It recommended that Microsoft should reinvest between 1% – 5% of its profits into Bitcoin. It also emphasized Bitcoin’s inflation hedge that can create a lot of long term value.
Board Reaffirms Conservative Approach
The Microsoft board voted against the resolution because they deemed Bitcoin to be too risky and not suitable for use in corporate treasuries. The board claimed the company has stabilised on proper financial strategies that will ensure shareholders are safeguarded.
At the meeting, Michael Saylor, the CEO of MicroStrategy and a great supporter of Bitcoin, spoke to the board. He claimed Bitcoin could increase Microsoft’s market cap by $5 trillion if adopted fully. Despite Saylor’s compelling arguments, the board remained unconvinced, reiterating its focus on stable and predictable investments.
Comparisons with Rivals and Broader Implications
The proposal referenced other firms adopting Bitcoin, including BlackRock and MicroStrategy. MicroStrategy has amassed 423,650 BTC, equivalent to 2% of the total supply. Despite these, Microsoft maintained its cautious stance, prioritizing traditional treasury management practices.
NCPPR has extended similar proposals to other corporations, including Amazon, which will deliberate on the matter in 2025. The pitch highlighted inflation’s impact on the company’s $88 billion cash reserves, positioning Bitcoin as a hedge.
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