Shareholders Decline Microsoft’s Bitcoin Reserve Initiative

Microsoft Shareholders Dismiss Bitcoin Investment Proposal Amid Stability Concerns

Microsoft (MSFT) shareholders voted down a proposal advocating for a bitcoin (BTC) treasury investment during the company’s annual meeting, affirming the tech giant’s cautious approach to volatile assets.

The proposal, brought forward by the National Center for Public Policy Research, suggested Microsoft diversify 1% of its $78.4 billion in cash and marketable securities—according to Bloomberg—into bitcoin, positioning it as a hedge against inflation. Despite the endorsement of cryptocurrency advocate Michael Saylor, Microsoft’s board recommended rejecting the motion, citing the asset’s unpredictability.

Saylor, executive chairman of MicroStrategy (MSTR), presented a compelling case to shareholders, highlighting his company’s 2,500% stock surge since adopting bitcoin as part of its treasury strategy. He contended that Microsoft’s strategy of dividends and stock buybacks had cost the company $200 billion in potential capital growth.

Despite his arguments, the board’s concerns about bitcoin’s volatility prevailed. They emphasized the company’s preference for stable and predictable financial strategies to align with its risk-averse investment philosophy.

Microsoft shares hovered at $446 following the announcement, unchanged for the day. Bitcoin, however, extended its decline, falling 4% over the past 24 hours to $95,700. The vote reinforces Microsoft’s reluctance to embrace cryptocurrencies in its financial strategy, at least for now.