Microsoft shareholders recently voted down a proposal to direct the company to invest in Bitcoin. The suggestion came from the National Center for Public Policy Research, a conservative think tank that has pushed similar initiatives across multiple Fortune 500 companies.
Despite Bitcoin’s strong performance this year, Microsoft has reaffirmed its stance on maintaining stable and predictable investments.
Proposal Urged Bitcoin Investment for Inflation Hedge
The proposal, presented at Microsoft’s annual shareholder meeting, urged the tech giant to consider Bitcoin a safeguard against inflation.
Bitcoin’s finite supply makes it an ideal hedge, the National Center for Public Policy Research, known for its controversial campaigns, said.
The think tank previously proposed similar things to other major companies, asking them to include Bitcoin in their financial strategy.
However, given Bitcoin’s 118% surge this year, Microsoft’s board needed more. The company required “stable and predictable investments” to ensure good liquidity and backing for ongoing operations.
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Microsoft’s deputy general counsel, Keith Dolliver, said the final vote tally would be made public in the coming days.
Microsoft Reaffirms Stable Investment Strategy Over Bitcoin
From the beginning, Microsoft management has insisted that the company’s investment strategy doesn’t match the volatility of cryptocurrencies.
Chief Financial Officer Amy Hood reiterated this in the meeting: ‘We have been focused on preserving capital, ensuring liquidity, and funding operations, partnerships, and investments. ‘
She noted that the company had accepted cryptocurrencies as payment since 2014, but its crypto investment approach remained unchanged.
Given its broad global operations and significant capital requirements, this approach is generally consistent with Microsoft’s on stability.
The company sees no immediate advantage to large investments in cryptocurrency, despite Bitcoin proponents claiming the currency is a hedge against inflation.
MicroStrategy’s Success with Bitcoin Raises Questions
MicroStrategy, a technology company that has vehemently invested in cryptocurrency, contrasts starkly with the refusal to pursue the Bitcoin proposal.
The company has invested over $37 billion into Bitcoin, and its stock has soared by more than 450% this year.
Microsoft’s encouragement came after MicroStrategy’s CEO Michael Saylor publicly called on the company to follow his company’s lead.
According to him, huge amounts of value that global corporations could hold could be preserved by holding Bitcoin, not cash.
He said the Microsoft shareholder vote was more cautious and conservative despite Saylor’s optimistic outlook.
Microsoft shares are up nearly 26% this year, a respectable performance by many measures, but they pale compared to MicroStrategy’s 200% gain.
However, for some investors, this volatility—the same volatility that has driven Bitcoin’s huge gains—could nonetheless be its downfall.
The lavish proposal was not accepted by Microsoft, which prefers more predictable and stable investments.
