At Microsoft’s annual gathering today, shareholders turned down a proposition to incorporate Bitcoin (BTC) into the company’s asset portfolio.
The initiative was put forward by the NCPPR, which advocated for Microsoft to allocate merely 1% to 5% of its profits towards Bitcoin.
The NCPPR believed this would diversify Microsoft’s investment approach. During the meeting, they presented a video in which they contended that Bitcoin could be a revolutionary technological development, and Microsoft shouldn’t overlook it.
They asserted that Bitcoin could enhance shareholder returns and mitigate investment risks. They also noted that major investors such as BlackRock, Microsoft’s second-largest shareholder, have already engaged with Bitcoin.
“The institutional and corporate embrace of Bitcoin is increasingly prevalent. Microsoft’s second largest shareholder, BlackRock, offers a Bitcoin ETF to its clients,” they stated.
However, Microsoft’s board was unconvinced. They maintained that adding Bitcoin was superfluous. They indicated that while they do consider Bitcoin and other cryptocurrencies in their investment strategies, they favor more secure and stable investment options. They further added that Bitcoin’s volatile price fluctuations render it a hazardous choice for a corporation that demands stability.
Despite the board’s initial reluctance, the NCPPR persisted, urging Microsoft to give it serious thought. Ultimately, the majority of shareholders voted against it, aligning with the board’s stance.
Even Michael Saylor, executive chairman of MicroStrategy (MSTR), endeavored to persuade Microsoft shareholders to support the proposal.
In a brief three-minute video, Saylor highlighted that Microsoft could have amassed $200 billion in capital over the past five years had it invested in Bitcoin rather than distributing dividends or repurchasing its own stocks. Nevertheless, the company’s shareholders opted to heed the board of directors’ counsel.
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