Microsoft Shareholders Reject Bitcoin Investment Proposal In Preliminary Vote

Microsoft, the world’s largest software company, has rejected the proposal to evaluate the potential benefits of adding Bitcoin (BTC) to its corporate balance sheet, despite meetings and lobbying from Bitcoin advocate Michael Saylor, co-founder of MicroStrategy. 

Saylor, who has transformed MicroStrategy into a major player in the cryptocurrency realm with over $40 billion in BTC holdings, made his case during a recent virtual shareholder meeting.

Saylor’s Bitcoin Push Fails

The proposal, given by Saylor on behalf of the Free Enterprise Project, called for an evaluation of whether diversifying Microsoft’s holdings to include BTC would be in the long-term interests of shareholders.

However, Microsoft’s board has already indicated resistance to the proposal, claiming that it is constantly evaluating cryptocurrencies.

This position was supported by proxy consulting firms such as Glass Lewis and Institutional Shareholder Services, which emphasized the “uncertainty surrounding the potential benefits of cryptocurrency investments.”

The proposal’s rejection comes as the BTC price has skyrocketed, more than doubling in value this year as it has recently reached a new record high of $104,000.

The political context is also contributing to the momentum, with President-elect Donald Trump’s return to office potentially ushering in more crypto-friendly legislation. 

Trump has expressed interest in creating a government Bitcoin stockpile, and pro-crypto Senator Cynthia Lummis has proposed that the US purchase 1 million BTC over the next five years.

Advocates Push For Corporate Crypto Adoption

According to Eswar Prasad, a Cornell University scholar, a pro-crypto administration may make it more acceptable for firms to invest a portion of their reserves to high-risk assets such as BTC. Prasad stated:

Given the positive prospects for the crypto sector under a Trump administration, it would certainly be defensible for a company to invest a small portion of its reserves in crypto, even if that investment is highly risky.

While there is a growing trend of companies investing in Bitcoin, like MARA Holdings, Block, and Tesla, analysts warn that the volatility presents major risks. If Bitcoin’s year-long run were to reverse, businesses that had substantially invested in the asset could suffer serious financial ramifications. 

Saylor, who stepped down as MicroStrategy’s CEO in 2022 to focus on Bitcoin advocacy, has emphasized BTC’s importance for corporate performance, stating, “If you are going to outperform, you are going to need Bitcoin.”

His presentation emphasized that Bitcoin’s market value may grow from $2 trillion to more than $200 trillion over the next 21 years, claiming that Bitcoin had outperformed Microsoft shares by a ratio of 10.

Microstrategy’s co-founder reportedly offered to drop the suggestion if Microsoft CEO Satya Nadella agreed to a private meeting, but the business declined.

At the time of writing, BTC continues its correction and is currently valued at $95,160. The market’s leading crypto has seen its price fall by 2% over the past 24 hours.

Featured image from DALL-E, chart from TradingView.com