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

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As a seasoned crypto investor with a decade of experience under my belt, I find Microsoft’s decision to reject Bitcoin as part of its investment strategy a missed opportunity. The volatility argument is a red herring; every investment carries risk, and it’s about managing that risk effectively.

Microsoft stockholders declined a proposition advocating the corporation to examine incorporating Bitcoin (BTC) into its financial plans. This decision was made, despite a persuasive effort by MicroStrategy’s CEO, Michael Saylor, to win over the shareholders.

The National Center for Public Policy Research (NCPPR) submitted the proposal.

Microsoft Rejects Bitcoin (BTC)

Microsoft’s shareholders’ choice put a halt to any potential plans for incorporating Bitcoin into their treasury reserves. A suggestion by the National Center for Public Policy Research proposed that the company consider the advantages of adding Bitcoin to its financial holdings, emphasizing its effectiveness as a strong defense against inflation. The proposal also pointed out that Bitcoin had surpassed corporate bonds in performance and could aid in diversifying the firm’s treasury. Although it wouldn’t have led to an immediate investment in the asset, it would have initiated more thorough examination of the concept. Michael Saylor, founder and CEO of MicroStrategy, also supported the advantages of such a move.

As an analyst, I propose considering a strategic shift whereby you convert your cash flows, dividends, share buybacks, and debt into Bitcoin. Such a move could potentially boost your stock’s price by adding hundreds of dollars.

Previously, Saylor suggested accumulating Bitcoin to Microsoft. In a subsequent talk to Microsoft’s executives, he expressed his belief that Bitcoin’s worth could escalate from $2 trillion to an astounding $200 trillion in the next 21 years. He asserted that if Microsoft were to invest in Bitcoin, it might potentially increase its market value by a staggering $5 trillion within the next ten years. Saylor’s optimism stems from his unwavering faith in his theory, which has proven profitable for MicroStrategy.

MicroStrategy is recognized for its bold approach to purchasing Bitcoin, and its shares have soared by approximately 2,500% since this acquisition began. Contrastingly, Microsoft shareholders declined the idea and opted not to mimic this strategy, considering it unnecessary as stated in a filing with the U.S. Securities and Exchange Commission (SEC).

Volatility Worked Against Bitcoin (BTC) 

The Microsoft board emphasized Bitcoin’s inherent price fluctuations and underscored the necessity of keeping investments steady and consistent to bolster the company and its activities. They also disclosed that the firm has strong mechanisms in place for managing its treasury and diversifying current assets for long-term shareholder advantages. When NCPPR pointed out comparable strategies used by BlackRock and MicroStrategy as instances of successful institutional Bitcoin adoption, the board rejected these comparisons, citing distinct corporate approaches. However, some critics on X view Microsoft’s decision as a significant oversight.

“NEW: MICROSOFT SHAREHOLDERS VOTE NO ON #BITCOIN TREASURY THIS WILL GO DOWN AS A HISTORIC MISTAKE.”

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2024-12-11 17:24