Microsoft shareholders have decisively voted against a proposal to invest part of the company's $78.4 billion cash reserves into Bitcoin during their annual meeting on December 10.
The proposal, submitted by the National Center for Public Policy Research (NCPPR), recommended Microsoft allocate between 1-5% of its profits into Bitcoin as a hedge against inflation. The conservative think tank argued that Bitcoin adoption could create substantial value for Microsoft shareholders.
MicroStrategy's executive chairman Michael Saylor pitched strongly in favor of the proposal, claiming Bitcoin investment could add nearly $5 trillion in value to Microsoft. During his three-minute presentation, Saylor emphasized Bitcoin's superior returns compared to traditional investments, noting it generated 62% annual returns between 2020-2024 versus Microsoft's 18%.
However, Microsoft's board opposed the proposal, citing concerns about cryptocurrency volatility and emphasizing their commitment to stable corporate treasury management. This stance aligns with Microsoft co-founder Bill Gates' previously expressed skepticism about cryptocurrencies' speculative nature.
The board highlighted that their existing financial processes provide adequate risk management and diversification. They stressed their focus remains on maintaining liquidity and operational funding for sustainable growth.
The rejection comes despite some major tech companies embracing cryptocurrencies. Tesla and MicroStrategy have added Bitcoin to their balance sheets, while BlackRock, Microsoft's second-largest shareholder, offers Bitcoin ETFs to clients.
Microsoft has maintained its cautious approach to cryptocurrency investments, though the company has accepted Bitcoin payments from customers since 2014. The tech giant's stock has gained 20% this year, trading at $443.33 per share.
A similar proposal is pending review at Amazon's shareholder meeting scheduled for April 2025.