Microsoft shareholders have firmly rejected a proposal to invest in Bitcoin, prioritizing financial stability over potential cryptocurrency gains. The decision came during the company's annual meeting, where a suggested plan to allocate 1% ($784 million) of Microsoft's assets to Bitcoin was voted down.
The proposal, put forward by the National Center for Public Policy Research, aimed to position Bitcoin as a hedge against inflation. MicroStrategy CEO Michael Saylor backed the initiative, highlighting Bitcoin's status as the seventh-largest global asset and projecting its market value to exceed $200 trillion by 2045.
However, Microsoft's board and major institutional investors, including Vanguard and BlackRock, opposed the move, citing concerns over Bitcoin's unpredictable price swings and potential risks. The cryptocurrency's 70% decline in 2022 exemplified the volatility that worried decision-makers.
Microsoft CEO Satya Nadella emphasized the company's strategic focus on artificial intelligence development rather than cryptocurrency investments. "AI is one of the most transformative technologies of our time," Nadella stated, highlighting Microsoft's commitment to technological advancement while managing associated risks.
The decision sparked mixed reactions from the cryptocurrency community. Saylor responded on social media, stating, "In 5 years, they'll understand. Everyone buys Bitcoin at the price they deserve." Meanwhile, supporters of Microsoft's decision praised the company's prudent approach to financial management.
Microsoft continues to maintain its investment strategy centered on low-risk assets like treasury bonds, prioritizing predictable returns and sustainable growth over speculative investments. This stance reflects the tech giant's broader commitment to financial stability amid ongoing regulatory uncertainties in the cryptocurrency sector.