Huge Bummer As Microsoft Shareholders Vote Against Bitcoin Treasury Proposal
Microsoft is not adding its name to the growing list of public companies holding Bitcoin on their balance sheets after the tech giants shareholders voted to reject a resolution that would have prompted the board to evaluate such a move.
The shareholders cited Bitcoins purported volatility as a key concern.
Microsoft Snubs Bitcoin
At Microsofts annual meeting on Dec. 10, the firms shareholders voted against a proposal to add Bitcoin to its balance sheet.
The proposal, introduced by the pro-free-market think tank National Center for Public Policy Research (NCPPR), recommended diversifying 1% of Microsofts $78 billion in cash and marketable securities into the flagship crypto as a hedge against inflation.
In the proposal, NCPPR noted, Microsoft cant afford to miss the next technology wave, and Bitcoin is that wave. In making its case, the National Center for Public Policy Research argued that adopting BTC would create trillions in value for Microsoft and strip away risk from shareholders.
Last month, the companys board urged shareholders to vote no to the measure, emphasizing that Microsofts management had already carefully considered the topic.
Michael Saylors Bitcoin Advocacy Fails
Earlier this month, Michael Saylor, the executive chairman of Bitcoin Development Company MicroStrategy, which has seen its stock price jump as much as 2,400% since adding BTC to the companys treasury strategy in 2020, pitched Bitcoin to the board of the $3.2 trillion Wall Street heavyweight. Saylor argued that Microsoft could add trillions to its market capitalization if it decided to buy Bitcoin.
However, Saylors efforts were in vain. The board maintained its stance that Bitcoins inherent volatility makes it unsuitable for Microsofts investment strategy. According to the board, the firm prioritizes stable and predictable investments to mitigate as much risk as possible.
It should be noted that Microsofts history with Bitcoin and other cryptocurrencies has been rather cautious. In 2014, the firm briefly accepted the benchmark crypto as a payment option but suspended the service in 2016, citing low usage and regulatory uncertainties.
Meanwhile, the NCPPR recently submitted a shareholder proposal to Amazon suggesting that a Bitcoin corporate treasury strategy should be considered at the April 2025 shareholder meeting.
Read more: https://zycrypto.com/huge-bummer-as-microsoft-shareholders-vote-against-bitcoin-treasury-proposal/
Text source: ZyCrypto
