Overview

Microsoft's shareholders decisively voted against a proposal to direct the board to contemplate the addition of Bitcoin to its treasury. This vote, which was anticipated, followed efforts by MicroStrategy Executive Chairman, Michael Saylor to sway the investors in favor of this cryptocurrency investment strategy.

Key Details

• Proposal Backed by: The National Center for Public Policy Research.
• Reason for Proposal: Suggested diversification of 1% of Microsoft’s total assets into Bitcoin to hedge against inflation. Microsoft has $78.4 billion in cash reserves.
• Company's Position: Microsoft emphasized its dedication to stable investments and displayed caution against the volatility associated with cryptocurrencies.

During the annual shareholder meeting, the board reiterated their stance against the proposal, which resulted in a definite rejection as shares traded flat.

Market Impact

Following the announcement, Bitcoin's value was reported at $95,700, marking about a 4% decline over the last 24 hours.

Involvement of Michael Saylor

Saylor, who has notably propelled his company’s stock through its Bitcoin investments, argued that Microsoft lost an estimated $200 billion in potential capital by opting for stock buybacks and dividends instead of Bitcoin purchases. Despite his efforts, the board's concerns regarding Bitcoin's notorious volatility overshadowed the potential benefits he presented.