In a bold bid to steer Microsoft (MSFT) toward cryptocurrency investment, MicroStrategy’s (MSTR) chairman and prominent Bitcoin (BTC-USD) advocate, Michael Saylor, recently made an ambitious pitch to Microsoft’s board. In a concise yet impactful presentation, Saylor proposed that Microsoft convert its cash flows, dividends, stock buybacks, and debt into Bitcoin, a move he claimed could potentially boost the company’s market cap by nearly $5 trillion. Highlighting Bitcoin as the next transformative tech wave, Saylor opened with a striking declaration: “Microsoft can’t afford to miss the next technology wave, and Bitcoin is that wave.”
Despite this fervent endorsement, Microsoft shareholders decided on Tuesday to vote against including Bitcoin on the company’s balance sheet. This decision aligned with the board’s advice, which highlighted that Microsoft already evaluates a wide array of assets, including Bitcoin, within its investment strategy. The proposal, named “Assessment of Investing in Bitcoin,” was championed by the conservative think tank, the National Center for Public Policy Research, promoting Bitcoin as a prime hedge against inflation.
Had the vote passed, it would have signified a strong shareholder belief in Bitcoin’s future, positioning Microsoft alongside companies like MicroStrategy (MSTR) and Tesla (TSLA), pioneers in corporate Bitcoin investment. MicroStrategy, under Saylor’s leadership, currently holds an impressive 402,000 Bitcoins, making it one of the largest corporate holders of the cryptocurrency, with a valuation of about $40 billion.
The rejection of this proposal also echoes the reservations of Microsoft co-founder Bill Gates, who has been vocal about the speculative risks associated with cryptocurrencies. Gates’ critique of crypto’s volatile nature seems to have resonated with the board and shareholders, influencing their decision.
This vote comes at a time when Bitcoin has not only crossed the significant $100,000 threshold but has also received endorsements from notable figures like President-elect Donald Trump and Russian President Vladimir Putin. Meanwhile, the crypto dialogue continues to evolve, with Amazon (AMZN) shareholders recently proposing, via the National Center for Public Policy Research (NCPPR), a 5% allocation of their balance sheet to Bitcoin, suggesting a broader, albeit cautious, corporate curiosity about digital currencies.
Microsoft’s decision to steer away from direct Bitcoin investment might reflect a broader strategy of risk management and asset diversification, choosing stability over the potentially high but unpredictable returns from cryptocurrency. However, this does not close the door on future considerations as the digital economy and regulatory landscapes evolve.
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