Microsoft shareholders have rejected a proposal to add Bitcoin to the company’s balance sheet.
Background
- The tech giant’s annual meeting took place on Tuesday, December 11
- The initiative was designed to help Microsoft diversify profits and enhance shareholder value
- The resolution was put forth on the table by Washington-based think tank National Center for Public Policy Research [NCPPR]
- Before the vote, BTC bull Michael Syalor Saylor told the company’s Board of Directors that the firm could add ~$5 trillion to its market cap if it goes all-in on Bitcoin
Why should you pay attention?
- The proposal failed to garner support from a majority of voting shareholders
- Both of Microsoft's proxy advisors — Glass Lewis and Institutional Shareholder Services — also suggested a 'no' vote
- Adding BTC to balance sheets, and national treasuries has helped companies like MicroStrategy and countries like El Salvador fetch an above-average return
- MSTR shares are up 450% this year alone, while MSFT is up merely 19.5%
- El Salvador’s BTC-related unrealized gain, on the other hand, is currently hovering above $333 million
- The latest decision serves as a testament to the reluctance of Microsoft shareholders to opt for the non-conventional, riskier path
- Crypto community members feel they will have to pay the price for it over the long term
Who said what?
- Mocking the latest verdict of the shareholders, Tron’s Justin Sun said,
“The Bitcoin price is just not high enough for Microsoft to consider it as a reserve. I highly recommend buying it when Bitcoin reaches 1 million USD”
- Highlighting the silver lining, market analyst Will Clemente said,
“To take a step back, the fact that Microsoft even had a vote to buy Bitcoin while we have a US strategic reserve up in the air, is insane”
- Amy Hood, Microsoft’s Finance Chief indicated that the company started accepting crypto payments in 2014, and added,
"We continue to think about the evolution of crypto"
Zooming out
- Saylor had advised the board to convert cash flows, dividend payouts, stock buybacks, and debt into the crypto
- In his pitch to Microsoft, Saylor said,
“If you do that, you’ll add hundreds of dollars to the stock price. You can create trillions of dollars of enterprise value. You can strip away risk from your shareholders”
- In other related news, Goldman Sachs CEO recently said that the firm will evaluate participating in BTC or ETH markets if regulators permit so
