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Microsoft shareholders rejected a proposal to add Bitcoin to their balance sheet. This proposal was rejected due to concerns about Bitcoin's volatility.
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Microsoft shareholders voted against a proposal to consider adding Bitcoin to the company's balance sheet at its annual meeting.
The proposal, published by the National Center for Public Policy Research, proposed diversifying 1% of Microsoft's $78 billion in cash and securities into Bitcoin as an inflation hedge.
The company's board had recommended that shareholders reject the move, citing concerns about Bitcoin's volatility and emphasizing Microsoft's preference for stable investments.
Michael Saylor, MicroStrategy's executive chairman, made a last-minute effort to support the proposal.
Saylor argued that Microsoft “lost $200 billion in potential capital gains over the past five years by prioritizing dividends and stock buybacks over Bitcoin.”
The Board of Directors maintained that Bitcoin's volatility makes it unsuitable for Microsoft's investment strategy, which focuses on predictable and risk-averse investments.
After the announcement, Microsoft stock was flat at $446, while Bitcoin fell more than 4% in the past 24 hours to $95,000.
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