The proposal to invest in Bitcoin was rejected! Microsoft prefers to choose assets with lower volatility
At Microsoft's annual shareholder meeting, shareholders rejected a proposal to invest in Bitcoin. The proposal was submitted by the National Center for Public Policy Research, suggesting that Microsoft evaluate the potential benefits of Bitcoin as an asset. Although MicroStrategy's Michael Saylor defended the proposal, arguing that Bitcoin could significantly enhance Microsoft's market value, the board preferred to choose assets with lower volatility. Ultimately, shareholders accepted the board's recommendation and voted down the proposal
According to the Zhitong Finance APP, at the annual shareholder meeting of Microsoft (MSFT.US) held this Tuesday, a proposal for Microsoft to consider investing in Bitcoin was rejected by shareholders.
The proposal was submitted by the National Center for Public Policy Research (NCPPR), suggesting that Microsoft evaluate the potential benefits of incorporating Bitcoin into the company's balance sheet. NCPPR believes that Bitcoin is an "excellent" hedge against inflation and points out that it has outperformed corporate bonds, making it a strong option for diversifying the company's financial management.
The proposal was also included in Microsoft's proxy statement, recommending that the company consider Bitcoin as a means of diversified asset allocation. However, this proposal failed to gain support.
Microsoft's board of directors recommended that shareholders vote against the proposal, stating that the company is already evaluating investments, including cryptocurrencies, but prefers to choose assets with lower volatility. Shareholders ultimately accepted the board's recommendation and rejected the proposal.
Even Michael Saylor, co-founder of MicroStrategy and a well-known Bitcoin supporter, was unable to persuade shareholders. According to foreign media reports, Saylor defended the proposal on behalf of NCPPR at the meeting. He stated, "Cash flow, dividends, stock buybacks, and debt can be converted into Bitcoin. If this is done, Microsoft's stock price will increase by hundreds of dollars."
Saylor had previously pitched the idea of Bitcoin investment to Microsoft's management. In a speech, he stated that Bitcoin's valuation would soar from $2 trillion to over $200 trillion in 21 years. If Microsoft invests in Bitcoin, the company's market value could increase by nearly $5 trillion over the next decade.
Despite MicroStrategy's impressive performance with a 460% increase in stock price this year due to its large-scale Bitcoin investments, Microsoft still chose to avoid this cryptocurrency craze. The Microsoft board believes that assets with lower volatility align better with the company's financial strategy