TL;DR
- Microsoft shareholders rejected a proposal to invest 1% of its funds in Bitcoin, presented by the NCPPR.
- Michael Saylor, president of MicroStrategy, tried to convince shareholders about the benefits of Bitcoin, but the proposal was rejected.
- The board argued that Bitcoin’s volatility poses a risk to the company’s financial stability.
Microsoft shareholders voted against a proposal seeking the company to invest part of its assets in Bitcoin. The proposal, presented by the National Center for Public Policy Research (NCPPR), suggested that the tech giant allocate 1% of its funds to the cryptocurrency as a hedge against inflation. The vote, which took place during the company’s annual meeting, was rejected by the shareholders, who followed the recommendation of the company’s board of directors.
Michael Saylor, president of MicroStrategy, seized the opportunity to make a presentation during the meeting, in which he tried to persuade Microsoft shareholders about the benefits of Bitcoin. Saylor highlighted his company’s massive investments in the cryptocurrency, presenting it as a store of value against economic uncertainties and inflation. However, the proposal was rejected as the board disagreed with the idea, arguing that Bitcoin’s volatility posed a risk to the company’s financial stability.
Microsoft Ignores Michael Saylor’s Recommendations
The NCPPR, in its proposal, addressed the growing institutionalization of Bitcoin, citing BlackRock, Microsoft’s second-largest shareholder, as an example, as the firm already offers a Bitcoin Exchange-Traded Fund (ETF). However, the proposal also acknowledged that the cryptocurrency was more volatile than other traditional assets, such as corporate bonds, and suggested that the company should consider allocating between 1% and 5% of its funds to Bitcoin purchases. The goal was to diversify the company’s assets and generate value for shareholders.
However, the Microsoft board remained firm in its position of rejecting the proposal. In a statement to the U.S. Securities and Exchange Commission (SEC), the company made it clear that it was already carefully assessing cryptocurrency investments and saw no need to adopt Bitcoin at that time. Finally, with the shareholders’ vote against the proposal, it was dismissed, and the company will continue with its current asset diversification strategy without including BTC in its balance sheets.