On Wednesday, during their annual meeting, Microsoft shareholders shocked the cryptocurrency market by rejecting a proposal to add Bitcoin (BTC) to its asset portfolio.
The announcement caused a sharp but brief drop in Bitcoin’s value, underscoring the market’s volatility. Microsoft’s stock also declined in response.
The proposal urged Microsoft’s board to evaluate whether holding Bitcoin as a corporate asset would offer long-term benefits for shareholders. However, the board dismissed the idea, calling such an evaluation unnecessary.
In a filing with the U.S. Securities and Exchange Commission (SEC), Microsoft stated that it already manages its assets prudently with shareholders’ long-term interests in mind. The company argued that conducting additional assessments of Bitcoin would be redundant and irrelevant to its operations.
This decision underscores Microsoft’s continued cautious approach toward cryptocurrencies.
While the tech giant briefly accepted Bitcoin as a payment method in 2014, it discontinued the practice in 2016, citing low adoption rates and regulatory uncertainties.
Some observers speculate that Microsoft co-founder Bill Gates’ critical stance on Bitcoin may have influenced the decision. Gates has previously characterized cryptocurrencies as speculative assets lacking substantial value.
The news sent Bitcoin’s price tumbling from $98,327 to $94,386, reflecting significant volatility. However, the cryptocurrency later recovered, trading at $98,323 as of 9:50 PM on Wednesday.
This fluctuation highlights how deeply the actions of major tech companies can sway market sentiment in the digital asset space.
Microsoft’s stock price also experienced a ripple effect. Shares closed at $443.33 on Wednesday, down 0.60% from the previous day. Analysts suggest the board’s rejection highlights the complex and evolving relationship between tech giants and cryptocurrencies.
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