Microsoft Shareholders Vote Against Bitcoin Investment Proposal
Microsoft’s shareholder vote on its Bitcoin investment proposal has finally concluded, with prediction market traders predicting a slim chance of the proposal passing. In the latest development, Microsoft shareholders voted against a Bitcoin investment proposal, preliminary voting showed.
Importantly, Microsoft’s board recommended that shareholders vote against a proposal sponsored by the National Center for Public Policy Research (NCPPR) that advocates the use of Bitcoin as a hedge against inflation. The board said the company has evaluated a variety of investment options, including Bitcoin, as part of its financial strategy.
During the shareholder meeting, a pre-recorded video from NCPPR was shown highlighting the potential benefits of holding Bitcoin. The video highlights the growing trend of institutional and corporate adoption of Bitcoin and cites BlackRock, Microsoft’s second-largest shareholder, which offers a Bitcoin ETF.
The proposal does note that Bitcoin is “more volatile” than corporate bonds and therefore recommends not holding “too much,” but also advises against “ignoring Bitcoin entirely” and putting shareholder value at risk. NCPPR recommends using 1% to 5% of company profits to purchase Bitcoin
The board called it “unnecessary”
However, despite NCPPR’s arguments, Microsoft’s board recommended against the proposal, describing it as “unnecessary” and stating that the company had carefully considered cryptocurrency investments. They emphasized the need for stable and predictable investments to ensure liquidity and working capital, which could be harmed by Bitcoin’s volatility.
Additionally, the proposal appears to rely heavily on a “fear of missing out” (FOMO) mentality, citing the Bitcoin adoption strategies of companies such as MicroStrategy and BlackRock as motivation.
Just recently, Bitcoin advocate Michael Saylor pitched these shareholders on why they should vote for companies to hold Bitcoin on their balance sheets. While Microsoft has chosen not to buy Bitcoin, other companies such as MicroStrategy are actively hoarding Bitcoin. Saylor’s company recently purchased 21,550 BTC for $2.1 billion.
What if Microsoft approves the proposal?
Notably, a vote in favor of Bitcoin would signal shareholder optimism for more direct investment and confidence in Bitcoin. With this move, Microsoft will join a coalition of other technology companies, such as MicroStrategy and Tesla, that have made significant investments in Bitcoin. Currently, MicroStrategy has the largest corporate Bitcoin portfolio, with 402,000 Bitcoins worth approximately $40 billion, which is just under 2% of the total Bitcoin supply.
Additionally, the results are in line with the stance of Microsoft co-founder Bill Gates, who has been critical of cryptocurrencies. Gates expressed concerns about the speculative nature and potential risks of cryptocurrencies.
Microsoft’s focus on artificial intelligence
It’s worth noting that Microsoft’s board of directors has been concerned about Bitcoin from the beginning due to its inherent volatility. The company prioritizes stable and predictable investments to minimize risk, the board said. Microsoft is currently focusing more on artificial intelligence (AI) than cryptocurrencies. The company has made significant investments in artificial intelligence and machine learning in 2024, aiming to integrate these technologies into its product ecosystem.
Within minutes of the decision being announced, MSFT shares were trading at $446. Bitcoin prices fell further following the news, falling 4% to $95,700 in the past 24 hours.
