Microsoft shareholders reject Michael Saylor’s proposal to diversify balance sheet with Bitcoin
At Microsoft’s annual shareholder meeting on Tuesday, billionaire Bitcoin investor Michael Saylor presented a proposal urging the tech giant to follow in his footsteps and diversify its balance sheet with Bitcoin. However, shareholders ultimately voted against the proposal, rejecting the idea.
Saylor, the executive chairman of MicroStrategy, has been a vocal advocate for Bitcoin and has seen his company’s stock price soar nearly 500% this year as it continues to invest billions of dollars in the cryptocurrency. In a recent video presentation, Saylor argued that Microsoft cannot afford to miss out on the potential of Bitcoin, calling it the next technological wave that the company should ride.
Despite Saylor’s efforts, Microsoft shareholders, as well as proxy advisors Glass Lewis and Institutional Shareholder Services, did not support the proposal. Microsoft’s treasury and investment services team had previously evaluated cryptocurrencies, including Bitcoin, to assess their potential impact on the company’s operations and economic risks.
While Microsoft has not completely ruled out the idea of investing in cryptocurrencies, the rejection of Saylor’s proposal indicates that the company is taking a cautious approach to the matter. Microsoft CFO Amy Hood mentioned during the meeting that the company has been considering the evolution of crypto and is open to exploring new opportunities in the space.
Saylor’s bold move to tie MicroStrategy’s fortunes directly to Bitcoin has paid off significantly, with the company now valued at about $83 billion. Since mid-2020, MicroStrategy has been actively investing in Bitcoin, acquiring a total of approximately 423,650 Bitcoins at an aggregate price of around $26.5 billion. With Bitcoin trading at $95,000, MicroStrategy’s holdings are now worth over $41.3 billion.
To fund its Bitcoin purchases, MicroStrategy has been selling stock and raising debt, most recently completing a $3 billion convertible debt sale in November. Saylor’s net worth has also surged to $9.1 billion, primarily driven by his ownership stake in MicroStrategy.
The rejection of Saylor’s proposal by Microsoft shareholders underscores the continuing debate around the role of cryptocurrencies in corporate balance sheets. While some see Bitcoin as a lucrative investment opportunity, others remain skeptical about its long-term viability and the associated risks. It remains to be seen whether Microsoft will reconsider its stance on cryptocurrencies in the future and how this decision could impact the industry and consumers moving forward.
