- Microsoft shareholders have rejected a proposal to add Bitcoin to the company’s treasury
- The board had advised against the move, citing concerns over Bitcoin’s volatility
- Bitcoin’s price experienced a decline following the decision
Microsoft’s shareholders have voted against a proposal to incorporate Bitcoin into the company’s financial holdings despite the entreaties of Michael Saylor. The board had previously recommended rejecting the proposal due to the cryptocurrency’s inherent volatility, and the board members followed through with this recommendation. The move precipitated a downturn in the Bitcoin price and turns attention towards Amazon’s decision on the same matter.
NCPPR Effort Fails
During the annual meeting on December 10, 2024, Microsoft’s shareholders considered a proposal to allocate a portion of the company’s assets to Bitcoin. The initiative, introduced by the National Center for Public Policy Research (NCPPR), suggested that investing in Bitcoin could serve as a hedge against inflation and enhance shareholder value. However, the board advised against it, emphasizing the need for stable and predictable investments to ensure liquidity and operational funding.
Michael Saylor, Executive Chairman of MicroStrategy, had advocated for Microsoft’s investment in Bitcoin. In a presentation to Microsoft’s board, Saylor argued that such an investment could significantly increase the company’s market valuation. Despite his efforts, the proposal did not gain sufficient support from shareholders.
Rejection Leads to Price Drop
In rejecting the proposal, Microsoft’s board highlighted that the company’s Global Treasury and Investment Services team regularly evaluates a variety of investable assets, including cryptocurrencies like Bitcoin. They expressed concerns over Bitcoin’s volatility, stating that such assets are less suitable for corporate treasury applications requiring stability. The board concluded that the requested public assessment was unwarranted, given the existing processes in place.
Following the shareholders’ decision, Bitcoin’s price experienced a decline, dropping by approximately 4% to around $95,700. This downturn reflects the market’s sensitivity to corporate adoption of cryptocurrencies and the potential impact of major companies like Microsoft choosing not to invest in digital assets.
The rejection of the Bitcoin investment proposal underscores the cautious approach that major corporations like Microsoft are taking toward integrating volatile digital assets into their financial strategies. This decision may influence other companies considering similar moves, highlighting the ongoing debate over the role of cryptocurrencies in corporate finance.
