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Crypto Daily 2024-12-11 14:15:49

Microsoft Shareholders Reject Proposal To Add Bitcoin (BTC) To Balance Sheet

Microsoft shareholders have rejected a proposal for the company to explore making Bitcoin (BTC) part of the company’s investment strategy. The rejection comes despite a strong push by MicroStrategy CEO Michael Saylor to convince shareholders. The National Center for Public Policy Research (NCPPR) submitted the proposal. Microsoft Rejects Bitcoin (BTC) The decision by Microsoft’s shareholders effectively ends any plans to integrate Bitcoin into the company’s treasury reserves. The proposal, submitted by the National Center for Public Policy Research, called for the company to evaluate the benefits of adding Bitcoin to its balance sheet, highlighting the asset’s ability to act as an excellent hedge against inflation. It also stated that Bitcoin had outperformed corporate bonds, and could help diversify the firm’s treasury. The proposal would not have resulted in an immediate investment into the asset but would have set the ball rolling for greater scrutiny of the idea. Michael Saylor, founder and CEO of MicroStrategy, also advocated for the benefits of such a move. “You can convert your cash flows and your dividends and your buybacks and your debt into Bitcoin. If you do that, you'll add hundreds of dollars to the stock price.” Saylor has advocated the idea of amassing Bitcoin to Microsoft previously. In a separate presentation to Microsoft’s leadership, Saylor argued that BTC’s valuation will jump from $2 trillion to $200 trillion in 21 years. He claimed that if Microsoft purchases BTC, it could potentially add $5 trillion in market value over the next decade. Saylor’s confidence comes from strict adherence to his thesis, which has paid off for MicroStrategy. MicroStrategy is known for its aggressive Bitcoin acquisition strategy and has seen its stock surge nearly 2,500% since it began acquiring the asset. However, Microsoft shareholders rejected the idea and decided against following a similar path, calling the proposal unnecessary in a filing with the United States Securities and Exchange Commission (SEC). Volatility Worked Against Bitcoin (BTC) The Microsoft board highlighted BTC’s inherent volatility and reiterated the importance of maintaining stable and predictable investments to support the company and its operations. The board also stated the company had robust processes to manage its treasury and diversify existing assets for long-term shareholder benefit. When NCPPR highlighted similar strategies adopted by BlackRock and MicroStrategy as examples of successful BTC adoption by institutions, the board dismissed the comparisons, citing differences in corporate strategy. Meanwhile, some on X called Microsoft’s decision a historic mistake. “NEW: MICROSOFT SHAREHOLDERS VOTE NO ON #BITCOIN TREASURY THIS WILL GO DOWN AS A HISTORIC MISTAKE.” Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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