Microsoft Shareholders Reject Bitcoin Reserve Proposal

Microsoft (MSFT) shareholders rejected a proposal urging the board to evaluate investments in Bitcoin. The proposal, titled "Assessment of Investment in Bitcoin," was presented by the National Center for Public Policy Research. It suggested that Microsoft diversify 1% of its total assets into Bitcoin as a potential hedge against inflation.

According to Bloomberg data, Microsoft’s current balance sheet includes $78.4 billion in cash and cash equivalents. Prior to the vote on the proposal, the company’s management advised shareholders to vote against it. The decision was finalized when preliminary results were announced during the company's annual meeting.

Michael Saylor's efforts were unsuccessful. The Chairman of MicroStrategy attempted to convey the potential gains Microsoft could achieve by adopting Bitcoin through a nearly three-minute presentation to Microsoft shareholders. Saylor claimed that Microsoft has lost $200 billion in capital over the past five years by opting for dividend payments and stock buybacks instead of purchasing Bitcoin.

However, the Microsoft board had approached the proposal with caution from the beginning due to Bitcoin's inherent volatility. The board prioritizes more stable and predictable investments to minimize risk as much as possible. Following the decision, MSFT stock prices remained steady at $446 throughout the day.

In contrast, Bitcoin's price dropped by 4% after the decision, testing levels below $94,500. The cryptocurrency recovered slightly in the following hours, closing the day around $96,500. As buying continued into the new day, Bitcoin rose to around $97,500 in the morning.