Michael Saylor’s proposal for Microsoft to invest in Bitcoin received a decisive rejection from shareholders during the company’s annual meeting held this week. Saylor, the executive chairman of MicroStrategy, argued that Microsoft should diversify a portion of its substantial cash reserves, estimated at $78.4 billion, into Bitcoin to harness its high returns and mitigate inflation risks.
Microsoft shareholders reject Michael Saylor’s Bitcoin investment proposal
Saylor’s push comes on the heels of MicroStrategy’s own successful strategy of accumulating Bitcoin, which has contributed to a staggering 500% rise in its stock price this year. Investors were reminded that between August 2020 and November 2024, Bitcoin produced annual returns of 62% compared to Microsoft’s 18% and the S&P 500’s 14%. During the meeting, Saylor presented a chart demonstrating Bitcoin’s superior performance over traditional investments, asserting, “Microsoft can’t afford to miss the next technology wave, and Bitcoin is that wave.”
The shareholder proposal, titled “Assessment of Investing in Bitcoin,” originated from the National Center for Public Policy Research, which advocated for the tech giant to allocate 1% of its cash and marketable securities to Bitcoin. However, Microsoft’s board advised against this idea, expressing concerns about the inherent volatility of Bitcoin, which does not align with their focus on stable investments. This sentiment was echoed by proxy advisory firms Glass Lewis and Institutional Shareholder Services, both of which also recommended a no vote.
Despite Saylor’s remarks highlighting potential lost opportunities, including a claim of $200 billion in capital forfeited by prioritizing buybacks and dividends over Bitcoin, shareholders remained unconvinced. Saylor directly addressed Microsoft CEO Satya Nadella, offering to discuss further if the company aimed to enhance shareholder value significantly.
Microsoft has explored cryptocurrencies previously, having accepted Bitcoin for customer payments since 2014. During the meeting, Amy Hood, Microsoft’s finance chief, reiterated that the company actively monitors developments in cryptocurrency as part of its broader financial strategy. Although Microsoft shares have risen approximately 19% this year, this pales in comparison to MicroStrategy’s impressive growth, which Saylor credits to its heavy investment in Bitcoin.
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As of December 8, MicroStrategy has accumulated around 423,650 Bitcoins at an aggregate cost of about $26.5 billion. With Bitcoin’s current trading value at approximately $95,000, the company’s holdings are worth over $41.3 billion. To finance these acquisitions, MicroStrategy has employed a strategy of selling stock and raising debt, including a notable $3 billion convertible debt offering completed on November 21.
While discussions on incorporating Bitcoin into Microsoft’s financial strategy have ended for now, Saylor’s vision remains steadfast, and he continues to advocate for the potential of Bitcoin within corporate treasury strategies. As Microsoft evaluates its financial operations, it will undoubtedly keep an eye on trends related to cryptocurrencies, but for the time being, involvement in Bitcoin investments is not in the company’s immediate plans.
Disclaimer: The content of this article is for informational purposes only and should not be construed as investment advice. We do not endorse any specific investment strategies or make recommendations regarding the purchase or sale of any securities.
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