Microsoft shareholders rejected a proposal to invest in Bitcoin, following the board’s concerns about volatility. Major institutional investors, like Vanguard and BlackRock, supported the board’s stance. Meanwhile, Microsoft is prioritizing AI innovation over cryptocurrency investments.
The company’s shareholders have officially voted against a proposal to incorporate Bitcoin into the company’s treasury holdings, which shows an alignment with its board’s recommendations.
The proposal was put forward by the National Center for Public Policy Research (NCPPR), which suggested Microsoft allocate 1% of its total assets, roughly $784 million, to Bitcoin as a reserve against inflation.
The board initially opposed the Bitcoin proposal because of its volatility and risks to financial stability. However, major institutional investors like Vanguard, BlackRock, and State Street, who own about 70% of Microsoft shares, have signaled support for the board’s stance which played a big role in the final decision, though these investors are also pro-crypto influences.
Michael Saylor pitched to Microsoft stakeholders
MicroStrategy’s Michael Saylor gave a three-minute presentation at Microsoft’s meeting, saying that the company missed out on $200 billion in gains by choosing stock buybacks and dividends over Bitcoin investments.
However, shareholders weren’t convinced, and most voted against the proposal, agreeing with the board’s view on cryptocurrency. With that, Microsoft doubled down on its focus on AI advancements over cryptocurrency investments.
The Bitcoin proposal highlighted the company’s focus on AI. The company invests heavily in AI and machine learning and aims to concentrate on innovation instead of exploring cryptocurrencies.
The decision to reject Bitcoin as a treasury asset did not have an immediate impact on Microsoft’s stock price, which remained steady at $446 post-announcement. However, Bitcoin’s price faced additional pressure, falling by 4% to hover around $94,000
While Bitcoin supporters may see the decision as a missed chance, the vote shows that institutional investors are cautious about cryptocurrencies. Microsoft also reiterated its focus on stable investments and AI technology as part of its commitment to sustainable growth.
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