Microsoft Shareholders Reject Proposal to Invest in Bitcoin, Citing Volatility Concerns
Microsoft (MSFT) shareholders decisively voted down a proposal to allocate 1% of the company’s $78.4 billion in cash reserves to bitcoin (BTC), highlighting ongoing skepticism toward the cryptocurrency’s role as a corporate asset.
The proposal, presented by the National Center for Public Policy Research, argued that bitcoin could serve as a hedge against inflation. However, Microsoft’s board urged shareholders to reject the motion, citing bitcoin’s volatility and its misalignment with the company’s low-risk investment strategy.
Michael Saylor, executive chairman of MicroStrategy (MSTR) and a vocal bitcoin advocate, made a case for the proposal during the annual meeting. Saylor pointed to MicroStrategy’s own massive gains from its bitcoin treasury strategy, suggesting that Microsoft missed out on potential returns by opting for stock buybacks and dividends over digital assets.
Despite Saylor’s efforts, shareholders ultimately sided with the board, and the proposal was defeated. Microsoft’s stock remained stable at $446, while bitcoin saw a 4% drop to $95,700 in the hours following the vote.
The decision reinforces a conservative investment philosophy at Microsoft, setting it apart from companies like MicroStrategy that have embraced cryptocurrencies as a central part of their financial strategies.
