Microsoft Shareholders Reject Bitcoin Proposal Citing Volatility and Strategic Mismatch

• Microsoft shareholders dismissed a proposal to allocate reserves to Bitcoin, citing volatility and financial stability concerns.
• The rejected plan highlighted Bitcoin’s adoption by firms like BlackRock but failed to align with Microsoft’s strategic priorities.
• Amazon explores Bitcoin investment, showing a contrasting strategy to Microsoft’s cautious rejection of cryptocurrency involvement.

Microsoft shareholders have decisively voted against a proposal to incorporate Bitcoin into the company’s financial strategy. During the annual meeting held on December 10, stakeholders dismissed the plan, which was advanced by the National Center for Public Policy Research (NCPPR). The proposal sought to allocate a portion of Microsoft’s reserves to Bitcoin investments, citing potential benefits such as diversification and significant long-term growth opportunities.

Proposal Advocates for Bitcoin as Strategic Asset

The NCPPR presented the proposal with a recorded video emphasizing Bitcoin’s increasing adoption among institutional investors and corporations. The organization argued that a modest allocation of 1% to 5% of Microsoft’s profits to Bitcoin could provide a strategic edge. 

The presentation noted that companies such as BlackRock, one of Microsoft’s largest shareholders, are already active in the cryptocurrency market through products like Bitcoin ETFs. While Bitcoin’s potential for growth was highlighted, the proposal also acknowledged the cryptocurrency’s volatility and advised a cautious approach to avoid undue risks.

Microsoft’s Board Pushes Back on Cryptocurrency Strategy

In response, Microsoft’s board expressed reservations about the proposal in a regulatory filing with the SEC. The board described the plan as unnecessary and reiterated the company’s current policies for managing and diversifying corporate treasury assets. 

Stability and liquidity were cited as key priorities that Bitcoin’s price fluctuations could undermine. According to the filing, the board emphasized the importance of investments that ensure predictable returns to support the company’s operations.

Shareholders Align with Board’s Recommendation

During the meeting, shareholders ultimately sided with the board, rejecting the proposal to include Bitcoin in Microsoft’s financial strategy. The decision reflects the company’s cautious stance toward cryptocurrency investments, prioritizing stability over the uncertainties associated with digital assets. Meanwhile, Amazon stakeholders are reportedly exploring a contrasting approach by proposing significant investments in Bitcoin, potentially indicating differing corporate strategies within the tech sector. Microsoft’s rejection of the Bitcoin proposal comes as Bitcoin recently surpassed a $2 trillion market cap.