Microsoft Shareholders Reject Bitcoin Investment Proposal

Recent developments show a clear opposition among Microsoft shareholders regarding the proposal to invest in Bitcoin. Although Bitcoin was characterized as an efficient hedge against inflation, only 0.55% of shareholders voted in favor of the investment.

In total, 28.234 million shares supported the Bitcoin investment compared to a staggering 5.148 billion votes against it, with around 22.6 million abstentions. This outcome highlights a strong disapproval of the cryptocurrency within the Microsoft investor community.

Before the voting, Microsoft’s board of directors recommended that shareholders reject the proposal. They cited the inherent volatility of cryptocurrencies as a major concern, stating, "Bitcoin is currently a more volatile asset than corporate bonds. Therefore, companies should not jeopardize shareholder value by holding excessive amounts of it."

Despite acknowledging Bitcoin as a solid hedge against inflation, Microsoft emphasized that companies must also exercise caution and not ignore Bitcoin completely. They noted that with corporate bond yields often falling below the actual inflation rate, some allocation could be beneficial.

Trends in Corporate Adoption

This rejection of the Bitcoin investment comes at a time when other companies are beginning to include Bitcoin in their financial strategies. For example, Microsoft pointed out Semler Scientific, which added $30 million in Bitcoin to its portfolio earlier this month. Additionally, there are discussions about Amazon converting at least 5% of its assets into Bitcoin, with a decision expected in the spring of next year.

Microsoft also highlighted MicroStrategy as a key player in this new trend, noting it is the largest private Bitcoin holder. MicroStrategy recently increased its Bitcoin holdings by $1.5 billion, raising its total to 423,650 BTC, valued at roughly $42 billion.

The company remarked that MicroStrategy, despite holding far less market share than Microsoft, has seen its stock outperform Microsoft's by 313% this year. Furthermore, Microsoft's second-largest shareholder, BlackRock, offers its clients a Bitcoin ETF, indicating growing institutional interest.

Even though Microsoft shareholders largely dismissed the Bitcoin proposal, the company made it clear that it is still in the process of evaluating diverse investment opportunities. The Global Treasury and Investment Services team at Microsoft will keep an eye on trends related to Bitcoin and other cryptocurrencies to guide future decisions. They acknowledged that the proposal recognized the volatility that impacts corporate treasury applications, which require reliable and predictable investments for operational funding.

Microsoft, Bitcoin, Shareholders