Microsoft Rejects Bitcoin Investment: What It Means for Shareholders
Microsoft’s shareholders have voted against a proposal to include bitcoin in the company’s financial reserves, following guidance from the board of directors to reject the measure. The board emphasized that the company already evaluates a variety of investable assets, including bitcoin, within its broader investment approach.
The proposal, titled “Assessment of Investing in Bitcoin,” was introduced by the National Center for Public Policy Research. The organization, known for its conservative stance, argued that holding BTC could act as a safeguard against inflation. Proponents suggested the move would position Microsoft alongside companies like Tesla and Microstrategy, which have embraced bitcoin on their balance sheets.
Microstrategy’s executive chairman, Michael Saylor, has encouraged Microsoft to adopt bitcoin as part of its financial strategy. Last week, Saylor delivered a concise presentation to Microsoft’s Board of Directors, advocating for the adoption of bitcoin as a strategic asset. He emphasized that bitcoin represents the next significant technological wave, suggesting that Microsoft’s engagement could substantially enhance its market valuation. “Microsoft can’t afford to miss the next technology wave, and bitcoin is that wave,” Saylor remarked in a video shared on X last week, garnering millions of views.
Saylor highlighted bitcoin’s superior annual returns compared to traditional assets, asserting that integrating bitcoin into Microsoft’s financial strategy could add hundreds of dollars to its stock price and potentially increase its market capitalization by approximately $5 trillion over the next decade. He proposed reallocating resources from stock buybacks and bond holdings to bitcoin investments, arguing that such a move would not only boost enterprise value but also mitigate shareholder risk. Saylor underscored bitcoin’s resilience against various economic and geopolitical risks, positioning it as a robust store of value.
Despite Saylor’s compelling arguments, Microsoft’s shareholders voted against the proposal to invest in bitcoin, following the board’s recommendation to maintain the current investment strategy focused on less volatile assets.
Microsoft’s decision to reject the BTC reserves proposal underscores ongoing skepticism about bitcoin within Microsoft’s leadership, including co-founder Bill Gates, who has criticized cryptocurrencies as speculative and risky. Meanwhile, other companies like Amazon are reportedly considering similar proposals, keeping the conversation about bitcoin’s place in corporate finance active.
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