Microsoft Shareholders Reject Bitcoin Diversification Proposal
Michael Saylor, the billionaire bitcoin advocate and Executive Chairman of MicroStrategy, has been vocal about his belief in bitcoin as the next technological revolution. At Microsoft’s annual shareholder meeting, Saylor encouraged the tech giant to leverage its substantial cash reserves to embrace bitcoin—a suggestion that was ultimately rejected by shareholders.
The Pitch: Bitcoin as the Future
Saylor, whose company has seen its stock skyrocket nearly 500% this year due to aggressive bitcoin investments, presented a compelling argument. In a video shared on X (formerly Twitter), he highlighted bitcoin’s superior annualized returns of 62% since August 2020, compared to Microsoft’s 18% and the S&P 500’s 14%. He proposed that Microsoft could amplify its stock price by converting cash flows, dividends, and buybacks into bitcoin.
“Microsoft can’t afford to miss the next technology wave, and bitcoin is that wave,” Saylor asserted in the video, which amassed over 3 million views.
Microsoft’s Conservative Stance
Despite Saylor’s passionate plea, Microsoft shareholders, along with advisory firms Glass Lewis and Institutional Shareholder Services, voted against the proposal. The company’s leadership, including CEO Satya Nadella and CFO Amy Hood, maintained a cautious approach. While Microsoft has evaluated cryptocurrencies and started accepting crypto payments in 2014, its treasury team remains focused on monitoring trends rather than making significant moves.
Saylor’s Bitcoin Crusade
MicroStrategy has built its identity around bitcoin, holding 423,650 bitcoins valued at over $41 billion as of December 2024. This bold strategy has transformed the company, once a mid-tier software firm, into a high-risk bitcoin proxy. To fund its acquisitions, MicroStrategy has sold stock and raised billions through convertible debt offerings.
Saylor’s personal fortune has surged to $9.1 billion, largely driven by his bitcoin investments. Undeterred by the setback with Microsoft, Saylor continues to advocate for broader adoption of the cryptocurrency.
A Tale of Two Companies
While MicroStrategy’s aggressive bitcoin strategy has paid off handsomely in stock performance, Microsoft has opted for a steadier path. Its shares have risen by 19% this year—a respectable figure but modest compared to MicroStrategy’s meteoric rise.
Saylor remains steadfast in his belief that bitcoin is the future, urging tech giants like Microsoft to join what he calls the next major financial wave. Whether they heed his advice or chart their own course, the debate underscores bitcoin’s growing influence in shaping corporate strategies.