Microsoft Shareholders Vote Against Proposed Bitcoin Treasury Strategy
Top software company Microsoft will not buy Bitcoin anytime soon after its shareholders disapproved of a proposal to add the asset to the firm’s portfolio on Tuesday. In October, Microsoft’s board urged shareholders to vote against the proposal.
Crypto Markets React to Microsoft Shareholders’ Decision
The development has caused the crypto markets to bleed in the past 24 hours, according to data from CoinGecko. Bitcoin, for example, plunged to $94,397 on Tuesday night but has since recovered to $97,853 as of this writing.
While Microsoft has avoided exposure to Bitcoin, several other tech companies have embraced the digital asset, with MicroStrategy leading the park. Co-founded by Michael Saylor, MicroStrategy bought its first Bitcoin in 2020. The idea was to generate ‘reasonable returns for shareholders’ amid the COVID-19 pandemic.
MicroStrategy’s Bitcoin Treasury
The firm’s Bitcoin treasury now holds over 420,000 coins worth about $41.5 billion based on BTC’s current price. Notably, the unrealized profit on this investment is $15.9 billion. Furthermore, MicroStrategy’s stock MSTR has benefited significantly from the company’s successful Bitcoin investment. On December 12th, the stock’s price crossed $350 for the first time in over two decades.
Since the start of the year, Saylor has been urging other companies to adopt Bitcoin, arguing that the asset has the ability to shield shareholders against inflation. Interestingly, he shared MicroStrategy’s Bitcoin strategy with the Microsoft board in early December, and his presentation was played yesterday during the annual shareholder meeting before voting on the Bitcoin-buying proposal commenced.
NCPPR Joins Saylor in Persuading Companies to Invest in Bitcoin
Alongside Saylor, the National Center for Public Policy Research (NCPPR) has also attempted to persuade various firms to consider investing in Bitcoin. At the start of December, it presented a proposal to Amazon, urging the company to invest at least 5% of its capital in Bitcoin. The retailer has yet to respond to the proposal.
Besides MicroStrategy, electric carmaker Tesla is another top US-based company with exposure to Bitcoin. Although it stopped accepting Bitcoin payments a few years ago, the company still owns over $1 billion worth of BTC.
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