Microsoft shareholders rejected a proposal to add Bitcoin (BTC) to the company’s asset portfolio during their annual meeting on Wednesday. The decision briefly shook the cryptocurrency market, sending Bitcoin’s value plummeting before a rapid recovery.
The proposal urged Microsoft’s board to explore whether holding Bitcoin could deliver long-term shareholder value. However, the board swiftly dismissed the idea, deeming it unnecessary and irrelevant to their operations. In an official filing with the U.S. Securities and Exchange Commission (SEC), Microsoft emphasized that its asset management strategy already prioritizes shareholder interests and financial prudence. The company deemed additional evaluations of Bitcoin redundant.
This decision reflects Microsoft’s consistent caution toward cryptocurrencies. Although the tech giant briefly accepted Bitcoin payments in 2014, it abandoned the practice in 2016, citing low adoption and regulatory concerns. Wednesday’s rejection further underscores the company’s reluctance to embrace digital assets as part of its core strategy.
Sharp drop in Bitcoin’s value
The announcement triggered a sharp drop in Bitcoin’s value, falling from $98,327 to $94,386. By 9:50 PM, the cryptocurrency had rebounded to $98,323, highlighting its notorious volatility. Analysts point to the significant influence major corporations wield over market sentiment, with Microsoft’s decision serving as a potent example.
Microsoft’s stock wasn’t immune to the fallout. Shares closed at $443.33, down 0.60% from the previous day. Financial experts suggest the slight dip reflects broader concerns over the company’s relationship with emerging financial technologies.
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Some industry watchers speculate that Bill Gates’ critical view of cryptocurrencies played a role in the decision. Gates has often labeled cryptocurrencies as speculative investments with minimal real-world value.
The incident underscores the evolving and often contentious intersection of technology and digital finance. As cryptocurrencies continue to push into mainstream markets, corporate stances like Microsoft’s will likely remain a pivotal force in shaping the industry’s trajectory.
