Microsoft shareholders made a decision not to approve the suggestion to add Bitcoin to the company’s balance sheets during their annual meeting on December 10.
Details of this Decision
The original idea was proposed by The National Center for Public Policy Research (NCPPR), a group that supports free-market policies. They believed it would be a smart way for Microsoft to diversify profits and increase shareholder value.
Now, The NCPPR submitted a pre-recorded video during the shareholder meeting. The video argued that Bitcoin is the next big technology wave, and Microsoft should not miss out. They used charts and data to explain how Bitcoin could benefit the company.
The first line from the video read, “Microsoft can’t afford to miss the next technology wave, and Bitcoin is that wave.”
The group claimed that adopting Bitcoin could add trillions of dollars in value to Microsoft and reduce risks for shareholders. They acknowledged that Bitcoin is volatile but said ignoring it could harm shareholders.
Hence, they suggested Microsoft allocate 1% to 5% of its profits to buy Bitcoin. They wanted the company to assess whether adding Bitcoin to its balance sheet would benefit shareholders in the long run. The proposal formally requested that Microsoft “conduct an assessment to determine if diversifying the Company’s balance sheet by including Bitcoin is in the best long-term interests of shareholders.”
However, Microsoft’s board disagreed and advised shareholders to vote against the proposal. They said the idea was unnecessary because the company already carefully manages its investments and focuses on stability and predictability, which Bitcoin doesn’t provide.
The NCPPR on their end tried to persuade Microsoft by pointing to other companies like MicroStrategy and BlackRock that have adopted Bitcoin. They argued Microsoft could miss out if it doesn’t act.
Also, earlier in December, Bitcoin supporter Michael Saylor spoke to Microsoft’s board claiming that adopting Bitcoin could increase Microsoft’s market value by $5 trillion. However, his argument didn’t convince the board.
The board said its current approach to managing finances is strong and doesn’t need a public assessment of Bitcoin. They acknowledged that while other companies like MicroStrategy are involved with Bitcoin, Microsoft operates differently.
At the end, the shareholders voted, they agreed with the board and rejected the proposal.
What You Should Know
The NCPPR is continuing its campaign and proposed a similar idea to Amazon on December 8. This proposal will be discussed at Amazon’s shareholder meeting in April 2025.
The NCPPR claims that inflation is reducing the value of Amazon’s cash reserves and that Bitcoin could protect shareholder value by acting as a hedge against inflation.
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