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Microsoft shareholders have voted against the firm buying Bitcoin, despite encouragement from MicroStrategy's Michael Saylor.
The National Center for Public Policy Research (NCPR) had pushed Microsoft to allocate 1% to 5% of its profits to Bitcoin purchases to boost shareholder value.
According to CNBC, the proposal failed to secure majority support from voting shareholders. A video from NCPR was shown at the shareholder's meeting which featured the line, “Microsoft can’t afford to miss the next technology wave, and Bitcoin is that wave.”
The NCPR also said Bitcoin would add trillions in value and "strip away risk" from shareholders, although admitting that Bitcoin was "more volatile" than corporate bonds.
In October, the Microsoft board recommended that its shareholders vote against a Bitcoin reserve. Microsoft already “carefully considers this topic,” the board claimed in a Securities and Exchange Commission (SEC) filing. Proxy advisory firms Glass Lewis and Institutional Shareholder Services also advised voting against it.
“Past evaluations have included Bitcoin and other cryptocurrencies among the options considered, and Microsoft continues to monitor trends and developments related to cryptocurrencies to inform future decision-making."
MicroStrategy's Michael Saylor then delivered a Bitcoin adoption strategy to Microsoft's board of directors. Presenting at Microsoft's December 2024 shareholder meeting, Saylor proposed a transformative shift in Microsoft's treasury approach that would allocate $200 billion in capital distributions into Bitcoin holdings.
The move would enhance shareholder value and could drive its share price to $584 per share, creating nearly $5 trillion in shareholder value by 2034, Saylor argued.
Saylor projected a reduction in enterprise value at risk from 95% to 59% and an improvement in annual returns from 10.4% to 15.8%, stating Bitcoin is a superior asset compared to traditional dividends and stock buybacks.
Blockhead
Microsoft already used Bitcoin technology through its open-source decentralized identifiers networks (ION), which runs on Bitcoin's blockchain. This system allows for decentralized digital credentials—such as driver’s licenses or diplomas—that users could use for online identification. These "decentralized digital credentials" also ensure that users retain control over their data.
The National Center for Public Policy Research has also proposed that Amazon take on the leading cryptocurrency asset as part of its reserves.
Noting that Bitcoin's performance has risen 131% over the past year, the think tank highlighted how the digital asset surpassed bonds by 126%.
Blockhead
Unlike Microsoft shareholders, Amazon shareholders seem to be supportive of the initiative too. "Shareholders request that the Board conduct an assessment to determine if adding Bitcoin to the Company's treasury is in the best long-term interest of shareholders," a shared internal document reads.
JUST IN: Amazon shareholders request that the Board conduct an assessment to determine if adding Bitcoin to the Company's treasury is in the best long-term interests of shareholders 👀 pic.twitter.com/WHUijc5CjA
— Bitcoin News (@BitcoinNewsCom) December 8, 2024
Earlier this week, MicroStrategy said it bought another $2.1 billion worth of Bitcoin yesterday, marking its fifth consecutive Monday that the firm announced Bitcoin purchases.
According to a US Securities and Exchange Commission (SEC) filing, MicroStrategy acquired 21,550 tokens for an average price of approximately $98,783 from 2 to 8 December.
