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Microsoft shareholders have decisively voted against a proposal to explore adding Bitcoin to the company’s treasury holdings.
The decision during the company’s annual shareholder meeting resulted from the persistent skepticism among major corporations about Bitcoin’s volatility and its role as a reliable financial asset.
The proposal, titled “Assessment of Investing in Bitcoin,” was introduced by the National Center for Public Policy Research (NCPPR), a think tank advocating that Microsoft should consider allocating 1% of its $78.4 billion in cash reserves to Bitcoin.
The NCPPR suggested this move could serve as a hedge against inflation, leveraging the cryptocurrency’s potential as a store of value.
In a concise three-minute presentation, Saylor highlighted the benefits of integrating Bitcoin into corporate treasury strategies, drawing on MicroStrategy’s own experience.
One of Bitcoin’s most vocal proponents, Michael Saylor, Executive Chairman of MicroStrategy, played a key role in championing the proposal.
Saylor claimed the company had foregone an estimated $200 billion in capital gains because it prioritized dividends and stock buybacks over Bitcoin investments. Despite Saylor’s compelling arguments, Microsoft’s leadership and shareholders remained unconvinced.
Saylor argued that Microsoft had missed an opportunity to preserve and grow shareholder value.
Over the past four years, MicroStrategy has amassed 21,550 BTC at a cost of $2.1 billion, reaping substantial returns as its stock price surged by over 2,500%.
While Microsoft’s stock remained steady at $446 after the announcement, Bitcoin’s price dropped by 4% over the past 24 hours to $95,700.
Microsoft’s rejection of the Bitcoin proposal represents a significant blow to efforts to integrate cryptocurrency into the balance sheets of America’s largest companies.
For now, Microsoft’s decision signals a cautious stance from the Microsoft Board, and no possibility of change is anticipated.
Amazon shareholders, represented by the National Center for Public Policy Research (NCPPR), recently urged the company to allocate at least 5% of its assets to Bitcoin, citing its superior long-term performance compared to corporate bonds.