In a clear rejection of cryptocurrency integration, only 0.55% of Microsoft (MSFT) shareholders voted in favour of a proposal to allocate 1% of the company’s assets to Bitcoin. The vote, held on November 10, was disclosed in a recent filing with the U.S. SEC.
Company Leadership Opposes Bitcoin Integration
The proposal was introduced by the National Center for Public Policy Research, a conservative think tank. It recommended that Microsoft diversify $780 million, 1% of its $78 billion in cash and marketable securities, into Bitcoin as a hedge against inflation.
Advocates of the measure argued that Bitcoin’s capped supply of 21 million coins offers protection against the declining purchasing power of fiat currencies.
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Microsoft’s board strongly opposed the proposal, urging shareholders to reject it. The board’s statement highlighted concerns about Bitcoin’s notorious price volatility and the company’s commitment to stable investments that align with its long-term financial strategy.
This cautious approach reflects Microsoft’s broader financial priorities. The company has historically emphasized stability through substantial dividends and stock buybacks, which have contributed to a $200 billion capital outflow. The leadership deemed Bitcoin’s risks incompatible with Microsoft’s financial framework.
Last-Minute Advocacy from Michael Saylor
Despite the board’s resistance, Michael Saylor, of MicroStrategy and a prominent Bitcoin advocate, made a last-minute push in support of the proposal. Saylor highlighted his company’s success in adopting Bitcoin as a reserve asset, arguing that the cryptocurrency could enhance shareholder value.
MicroStrategy, known for its aggressive Bitcoin acquisitions, has seen its strategy spark both praise and criticism. Saylor pointed to Bitcoin’s potential to act as a store of value and a hedge against inflationary pressures, but his advocacy failed to sway Microsoft’s shareholders.
The overwhelming 99.45% opposition to the proposal underscores the scepticism surrounding Bitcoin’s integration into the balance sheets of traditional tech giants.
While smaller companies and niche players have adopted Bitcoin, most large corporations remain hesitant, citing regulatory uncertainty and market instability.
Microsoft’s Strong Market Position
Despite the Bitcoin debate, Microsoft continues to thrive. The company’s share price stood at $448.99, reflecting a 1.28% increase on the day. With a global market capitalization of $3.32 trillion, Microsoft remains a dominant force in the tech industry, leveraging steady revenue streams from its software, cloud services, and hardware offerings.
The proposal’s defeat highlights the divide between Bitcoin advocates and traditional corporate financial strategies. While some companies, like MicroStrategy and Tesla, have embraced Bitcoin, most corporations remain wary of its unpredictable nature. The vote at Microsoft serves as a reminder that Bitcoin’s path to mainstream adoption in corporate America is far from guaranteed.
Also Read: Michael Saylor Urges US Government To Buy 4 Million Bitcoin & Convert 75% of Surpluses To BTC