Microsoft Shareholders Reject Buying Bitcoin Advice from Michael Saylor
Microsoft shareholders recently voted against a proposal to invest in Bitcoin, despite advocacy from MicroStrategy’s Michael Saylor. The National Center for Public Policy Research suggested that Microsoft allocate a portion of its profits to Bitcoin purchases to enhance shareholder value. However, the proposal did not receive majority support from voting shareholders. The NCPR argued that Bitcoin could bring trillions in value and reduce risk for shareholders, although acknowledging its volatility compared to corporate bonds.
In response to the proposal, the Microsoft board, along with advisory firms Glass Lewis and Institutional Shareholder Services, recommended against establishing a Bitcoin reserve. They stated that Microsoft carefully considers cryptocurrency-related topics and keeps an eye on industry trends for future decision-making.
During Microsoft’s recent shareholder meeting, Michael Saylor presented a Bitcoin adoption strategy, proposing that Microsoft allocate $200 billion to Bitcoin holdings. Saylor believes this move could significantly increase shareholder value, potentially raising the share price to $584 per share and creating nearly $5 trillion in shareholder value by 2034. He argued that Bitcoin outperforms traditional dividends and stock buybacks, projecting reduced enterprise risk and improved annual returns.
Despite the push for Bitcoin adoption at Microsoft, the company already utilizes Bitcoin technology through its ION decentralized identifiers networks, showcasing their commitment to innovation in this space.
On the other hand, Amazon shareholders have shown interest in exploring Bitcoin as a reserve asset, similar to Microsoft’s situation. Like Microsoft, Amazon faces pressure from shareholders to consider adding Bitcoin to its treasury. While Microsoft shareholders rejected the idea, Amazon investors seem more supportive of the initiative, suggesting that the company conduct an assessment to determine the long-term benefits of including Bitcoin in its treasury.
In other news, MicroStrategy continues its Bitcoin investment spree, recently purchasing $2.1 billion worth of Bitcoin. This represents the fifth consecutive Monday that the firm has announced Bitcoin purchases, demonstrating their ongoing commitment to the digital asset. If you’re interested in staying up-to-date on digital assets like Bitcoin, join Blockhead for free to receive the latest news and insights.