Bitcoin’s Sharp Decline / Microsoft Shareholders Reject Bitcoin Purchase Proposal

EghtesadOnline: Microsoft, one of the world's tech giants, recently saw an important vote among its shareholders, resulting in the rejection of a proposal to buy Bitcoin as part of the company’s investments. This decision had an immediate impact on the Bitcoin market, causing the cryptocurrency’s value to drop. The report details this decision and the reasons behind it.

Last night, Microsoft shareholders voted against the proposal to purchase Bitcoin and allocate 1% of the company’s cash reserves to this cryptocurrency. The proposal, suggested by the National Center for Public Policy Research (NCPPR), aimed to diversify investments and protect the company’s assets from inflation. However, Bitcoin's price volatility and the Microsoft board's differing views were the primary reasons for rejecting the proposal.

The Impact of the Rejection on the Bitcoin Market

Following the news of the proposal’s rejection, Bitcoin’s value, which had recently risen to over $98,000, dropped to $95,700. This market reaction highlights the significant influence that major tech companies’ decisions have on cryptocurrency prices.

A Proposal for Diversification and Greater Returns

According to the NCPPR’s proposal, Microsoft was to allocate about 1% of its cash reserves, equivalent to $800 million, to buy Bitcoin. However, the Microsoft board had informed shareholders prior to the vote that the company’s treasury team regularly reviews various assets for diversification and does not see the need for approval of this specific proposal.

Michael Saylor Defends Bitcoin

Michael Saylor, CEO of MicroStrategy and a prominent Bitcoin supporter, was present at the Microsoft shareholder meeting. In his three-minute presentation, he attempted to convince shareholders to support the proposal. He pointed out Microsoft’s poor performance in using excess capital for high-return investments, stating that the company had lost about $200 billion of its capital over the past five years.

Ongoing Efforts to "Bitcoinize" Large Companies

Although Microsoft shareholders rejected the proposal, the NCPPR announced that it will continue its efforts to persuade other major companies. Reports indicate that the organization plans to present a similar proposal to Amazon, and there may soon be a similar vote among the e-commerce giant’s shareholders.

As one of the world’s largest tech companies, Microsoft decided to forgo Bitcoin investment as part of its cash reserves. This decision shows that despite Bitcoin’s growing popularity, concerns about the associated risks still remain. At the same time, Bitcoin advocacy groups continue their efforts to persuade large companies, and the future of this cryptocurrency in the business world remains a subject of ongoing discussion.