Microsoft shareholders reject Michael Saylor's proposal to buy Bitcoin.

• During Microsoft's annual shareholder meeting, Michael Saylor stated that the company could convert cash flows, dividends, buybacks, and debt into bitcoin.
• As MicroStrategy has invested billions of dollars in bitcoin, Saylor's net worth has increased by billions of dollars.
• Microsoft investors voted down the proposal.

Michael Saylor, a billionaire bitcoin investor who transformed his company into a high-risk proxy for cryptocurrency, has been urging it to utilize some of its substantial cash reserves to mimic his actions.

But shareholders on Tuesday said no.

In October, the National Center for Public Policy Research, a conservative think tank, announced its intention to submit a shareholder proposal to the software company's board, recommending that the company diversify its balance sheet with bitcoin.

At Microsoft's annual shareholder meeting, Saylor presented a proposal on behalf of his company, which has experienced a nearly 500% increase in stock price this year due to its acquisition of billions of dollars worth of.

According to Saylor, Microsoft cannot afford to miss the next technology wave, which is bitcoin. The video presentation he released on X last week received over 3 million views.

During his three-minute presentation, Saylor presented a chart indicating that bitcoin generated annual returns of 62% from August 2020 to November 2024, compared to 18% for Microsoft and 14% for the S&P 500. Additionally, the presentation stated that bonds as an asset class had lost 5%.

"Saylor stated that by converting cash flows, dividends, buybacks, and debt into Bitcoin, you can increase the stock price by hundreds of dollars."

Saylor has previously made a pitch to Microsoft, which had $78.4 billion in cash, equivalents, and short-term investments at the end of September.

Microsoft's treasury and investment services team previously evaluated bitcoin and other cryptocurrencies to fund the company's operations and reduce economic risk, and continues to monitor trends and developments related to cryptocurrencies to inform future decision making.

A day later, Saylor directly addressed Microsoft CEO Satya Nadella on X.

Saylor wrote to @SatyaNadella, suggesting that he call him if he wants to generate the next trillion dollars for $MSFT shareholders.

The proposal did not receive support from a majority of shareholders, as Microsoft recommended rejection and proxy advisors Glass Lewis and Institutional Shareholder Services also suggested a no vote.

This year, Microsoft shares have only gained approximately 19%, in contrast to MicroStrategy's significant outperformance with a gain of about 230%.

MicroStrategy, now valued at $83 billion, has linked its company's success to the performance of bitcoin. In mid-2020, the software business announced its plan to invest in bitcoin, committing $250 million over the next 12 months to "one or more alternative assets," which could include digital currencies such as bitcoin. At the time, MicroStrategy's market cap was about $1.1 billion.

As of Nov. 10, MicroStrategy's total bitcoin holdings were approximately 279,420, acquired at an aggregate price of $11.9 billion. With bitcoin currently trading at $95,000, those holdings are now worth over $26.5 billion.

MicroStrategy has sold stock and taken on debt to finance its bitcoin purchases. The company announced on November 21st that it had completed a $3 billion convertible debt sale "to acquire additional bitcoin and for general corporate purposes."

According to Forbes, Saylor's net worth has increased to $9.1 billion, mainly because of his ownership in MicroStrategy.

WATCH: Michael Saylor on MicroStrategy and bitcoin