Michael Saylor's Proposal for Microsoft to Invest in Bitcoin Is Rejected by Shareholders

Michael Saylor, the billionaire bitcoin investor and CEO of MicroStrategy, has been advocating for Microsoft to invest a portion of its substantial cash reserves in bitcoin. This suggestion was intended to diversify the company’s balance sheet.

However, during Microsoft’s annual shareholder meeting, the proposal presented by Saylor was ultimately rejected by the shareholders.

Earlier in October, Microsoft informed its investors that the National Center for Public Policy Research, a conservative think tank, planned to submit a proposal urging Microsoft’s board to explore the possibility of investing in bitcoin.

Saylor is now the executive chairman of MicroStrategy, a company that has significantly increased its stock value by investing billions in bitcoin. This year alone, MicroStrategy's stock price has risen by nearly 500% as a result of its aggressive bitcoin purchases.

In his three-minute video presentation, which garnered over 3 million views on social media, Saylor emphasized the importance of embracing new technology trends. He compared the annual returns of bitcoin, which averaged 62% between August 2020 and November 2024, to Microsoft’s 18% and the S&P 500’s 14% during the same period, while bonds saw a loss of 5%.

Saylor asserted that by converting cash flows and dividends into bitcoin, Microsoft could add significant value to its stock price.

This was not Saylor's first attempt to persuade Microsoft. The company was reported to have $78.4 billion in cash, equivalents, and short-term investments as of the end of September. Microsoft previously acknowledged in its proxy filing that it had explored the potential of bitcoin and other cryptocurrencies for their operations and economic risk management.

Following the proposal, Saylor directly reached out to Microsoft CEO Satya Nadella via social media, offering his assistance if the company wished to pursue this lucrative opportunity.

Despite Saylor’s passionate pitch, the majority of the voting shareholders did not support the proposal, especially after Microsoft recommended a rejection. Notably, proxy advisors Glass Lewis and Institutional Shareholder Services also advised against the proposal.

In 2014, Microsoft began accepting cryptocurrency payments, and during the meeting, CFO Amy Hood reiterated the company’s ongoing evaluation of the cryptocurrency landscape.

While Microsoft shares have increased by approximately 19% this year, the performance lags far behind that of MicroStrategy. Saylor has firmly aligned MicroStrategy’s success with bitcoin, relying on the cryptocurrency's value to drive his company’s growth.

Since mid-2020, MicroStrategy has significantly shifted its business strategy from being a traditional software firm to a major player in the investment landscape. The company announced plans to invest heavily in bitcoin, committing $250 million to alternative assets, including digital currencies.

As of November 10, MicroStrategy and its subsidiaries held about 279,420 bitcoins, acquired for roughly $11.9 billion. With bitcoin reaching prices around $95,000, these assets are now valued at more than $26.5 billion.

To fund its bitcoin acquisitions, MicroStrategy has been proactive in selling stock and raising debt, recently completing a $3 billion convertible debt sale aimed at further boosting its bitcoin portfolio.

Saylor’s wealth has surged to approximately $9.1 billion, mainly from his holdings in MicroStrategy, which now has a market capitalization of about $83 billion.

Saylor, Microsoft, Bitcoin