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Journalist
Hassan Shittu
Journalist
Hassan Shittu
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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.
However, Microsoft’s board had urged shareholders to reject the proposal, citing the risks associated with Bitcoin’s inherent price fluctuations.
Microsoft Shareholders Vote Down Bitcoin: Did Michael Saylor’s Advocacy Fail?
One of Bitcoin’s most vocal proponents, Michael Saylor, Executive Chairman of MicroStrategy, played a key role in championing the proposal.
In a concise three-minute presentation, Saylor highlighted the benefits of integrating Bitcoin into corporate treasury strategies, drawing on MicroStrategy’s own experience.
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%.
Saylor argued that Microsoft had missed an opportunity to preserve and grow shareholder value.
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.
The board emphasized that the company’s financial strategy prioritizes stability and predictability, factors that Bitcoin’s volatility cannot guarantee.
Implications for Bitcoin Adoption Among Corporations
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.
Unlike MicroStrategy, which continues to expand its Bitcoin holdings, Microsoft remains cautious.
The vote outcome has also impacted market sentiment.
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.
For now, Microsoft’s decision signals a cautious stance from the Microsoft Board, and no possibility of change is anticipated.
The decision also follows a broader trend of corporations assessing Bitcoin’s viability.
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.
In a proposal shared by podcaster Tim Kotzman, the think tank criticized the Consumer Price Index (CPI) as an unreliable inflation measure, suggesting actual inflation may be twice as high, threatening the value of Amazon’s $88 billion in cash and short-term assets.
To protect shareholder interests, the proposal argues that Bitcoin offers a viable hedge against inflation and could fulfill Amazon’s fiduciary duties despite its short-term volatility.
While Microsoft board members might be cautious, other companies are getting in already.
Nasdaq-listed Worksport (WKSP) recently announced that it is integrating Bitcoin and XRP into its corporate treasury strategy.
It aims to convert interest earnings into cryptocurrency and allocate up to 10% of excess operational cash for crypto investments.
Additionally, the company will allow cryptocurrency transactions on its website, Worksport.com, with an initial total allocation capped at $5 million, subject to future board adjustments based on market conditions.
