Shareholders Dismiss Bitcoin Reserve StrategyMicrosoft shareholders have voted against a bold proposal to allocate between 1% and 5% of the company’s assets—valued at up to $3.9 billion—to Bitcoin reserves. Spearheaded by the National Center for Public Policy Research (NCPPR), the plan aimed to diversify Microsoft’s holdings and hedge against inflation, with prominent Bitcoin advocate and MicroStrategy CEO Michael Saylor championing the initiative. Saylor suggested that embracing Bitcoin could boost Microsoft’s market capitalization by nearly $5 trillion, describing the cryptocurrency as “the next technology wave” and projecting its market value to reach $200 trillion by 2045.Despite the ambitious vision, Microsoft’s board stood firm in its opposition. In a filing with the SEC, the board deemed the proposal “unnecessary,” citing Bitcoin’s notorious volatility and regulatory uncertainty. The document highlighted the risks associated with cryptocurrency investments, particularly their unsuitability for corporate treasuries requiring stable and predictable assets to ensure liquidity. Institutional heavyweights like Vanguard, BlackRock, and State Street, which collectively own around 70% of Microsoft shares, supported the board’s conservative stance.Bitcoin’s volatile history, including a dramatic 70% price drop in 2022, was central to the board’s reservations. Instead, Microsoft reaffirmed its commitment to low-risk investments, such as treasury bonds, to prioritize long-term stability and sustainable growth. This decision underscores the tech giant’s cautious financial philosophy, contrasting sharply with companies like MicroStrategy, which holds over 420,000 BTC worth approximately $42 billion.Meanwhile, Microsoft’s focus is firmly directed toward artificial intelligence as a cornerstone of its future strategy. CEO Satya Nadella emphasized AI’s transformative potential, stating it would “bend the productivity curve” for individuals and industries while addressing critical global challenges. Nadella framed AI as the company’s primary growth driver, aligning it with Microsoft’s broader mission of fostering global success through technology.The decision drew mixed reactions. Advocates of the Bitcoin proposal expressed disappointment, with Saylor cryptically noting, “Everyone buys Bitcoin at the price they deserve.” TRON founder Justin Sun joked that Microsoft might reconsider if Bitcoin reaches $1 million. Critics accused the company of sidestepping innovation, while supporters praised its prudent approach to safeguarding financial stability amid market volatility.The episode highlights a philosophical divide in corporate attitudes toward cryptocurrency. While some, like MicroStrategy, view Bitcoin as an essential hedge against inflation, Microsoft’s decision reflects a preference for predictable, low-risk strategies to maintain operational liquidity and weather economic uncertainties.This article has been refined and enhanced by ChatGPT.