Microsoft Shareholders Vote Against Bitcoin Investment Proposal
Microsoft Corp. (NASDAQ: MSFT) has opted not to invest in Bitcoin. On December 10, 2024, Microsoft shareholders rejected a proposal from the National Center for Public Policy Research to allocate 1 percent of total assets into Bitcoin as a hedge against fiat devaluation and global inflation. This decision aligns with co-founder Bill Gates' stance on cryptocurrencies, which he argues lack societal value and can endanger smaller investors.
Gates has no investments in crypto assets, including Bitcoin, despite the approval of spot BTC ETFs. Following the shareholders' vote, MSFT shares decreased approximately 1 percent, trading around $442. Michael Saylor, founder of MicroStrategy Inc. (NASDAQ: MSTR), stated that Microsoft has lost over $200 billion in capital over the past five years by focusing on dividends and stock buybacks rather than adopting a Bitcoin strategy. In contrast, MSTR shares have increased more than 20 times since implementing a Bitcoin strategy in 2020.
Market Impact of Microsoft’s Decision on Bitcoin
After the announcement, Bitcoin's price fell about 1 percent to retest a support level near $94,316 before rebounding above $96k. More than $31 million, primarily from long traders, was liquidated within four hours following the news. The Bitcoin industry, valued at nearly half of Microsoft’s market cap, is expected to prosper long-term, driven by institutional interest. According to reports, US spot BTC ETFs, especially BlackRock’s IBIT, have increased Bitcoin adoption rates since the re-election of President-elect Donald Trump.
Bitcoin recently surpassed $100k amid rising futures Open Interest (OI) and demand from whale investors. Market data shows Bitcoin’s OI has exceeded $66 billion, with centralized exchange supply dropping below 2.26 million BTC for the first time in years. Consequently, Bitcoin's valuation is projected to surpass Gold's due to its fixed supply and increasing institutional demand. Microsoft may need to consider digital assets to remain competitive in the technology sector.