Microsoft shareholders decisively voted against a proposal to explore investing in Bitcoin, following strong opposition from the company’s board of directors. The proposal, introduced by the National Center for Public Policy Research, suggested Microsoft allocate 1% of its $78.4 billion in cash and marketable securities to Bitcoin as a hedge against inflation. The vote, held during Microsoft’s annual shareholder meeting, reflected the board’s concerns over Bitcoin’s volatility and its alignment with the company’s long-term investment strategy.

The proposal, titled "Assessment of Investing in Bitcoin," called for the board to conduct a detailed evaluation of whether Bitcoin could be a viable addition to Microsoft's treasury holdings. Proponents argued that such an investment could diversify Microsoft’s assets and potentially yield long-term gains in shareholder value.

Microsoft’s board, however, firmly opposed the measure, stating in its proxy statement that the company already evaluates a variety of investment options and considers factors such as diversification and inflation protection. The board emphasized that stability and predictability are priorities for corporate treasury investments, which they believe Bitcoin’s volatility could jeopardize.

Michael Saylor, the executive chairman of MicroStrategy, was a vocal supporter of the proposal. Saylor delivered a three-minute presentation during the meeting, highlighting MicroStrategy’s success in adopting a Bitcoin-focused treasury strategy, which he claimed contributed to a significant increase in the company’s stock value over the past four years.

Saylor argued that Microsoft’s strategy of dividends and stock buybacks had cost the company $200 billion in potential capital growth. He stated, “It’s time for Microsoft to evaluate its Bitcoin strategic options,” suggesting that adopting a Bitcoin standard could add “hundreds of dollars” to Microsoft’s stock price and create “trillions of dollars in enterprise value.”

Despite his impassioned pitch, the proposal was ultimately rejected by shareholders.

Microsoft’s board maintained that its existing treasury management practices are robust and include regular evaluations of various asset classes, including Bitcoin. In its opposition to the proposal, the board noted that Bitcoin’s high volatility presents challenges for liquidity and operational funding, which require stable investments.

“Microsoft has strong and appropriate processes in place to manage and diversify its corporate treasury for the long-term benefit of shareholders, and this requested public assessment is unwarranted,” the board stated.

Following the announcement, Microsoft’s stock (MSFT) remained stable, trading at $446, while Bitcoin prices dipped 4% over the past 24 hours to approximately $96,000.

Microsoft plans to publish the official vote results in an 8-K filing, as required by regulatory procedures. While this decision signals Microsoft’s cautious approach to Bitcoin, it also reflects broader hesitations among large corporations to adopt Bitcoin as part of their financial strategies.

This rejection comes at a time when Bitcoin is gaining traction in the financial ecosystem, with its price crossing the $100,000 threshold for the first time last week. While Microsoft shareholders opted for caution, proponents like Saylor continue to advocate for Bitcoin’s transformative potential in reshaping corporate treasury strategies.

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