Microsoft Will Not Invest in a Bitcoin Reserve as Shareholders Vote Against the Motion

Sad day for the crypto community as Microsoft shareholders have firmly voted against a proposal to invest its treasury holdings into a Bitcoin reserve.

The recommendation, voted on on December 10, was rejected by the majority of Microsoft’s board citing various concerns. Their stance aligns with prior concerns raised by co-founder Bill Gates, who has consistently criticized cryptocurrencies describing them as speculative and “100% based on greater fool theory.”

Michael Saylor’s Campaign to Convince Microsoft Fails

Michael Saylor, the chairman of MicroStrategy, led a spirited campaign to pitch Bitcoin’s benefits to Microsoft shareholders.

Saylor, co-founder of Microstrategy, a Bitcoin proxy company owning more than $40 billion worth of the cryptocurrency, made his case at Microsoft’s virtual shareholder meeting on Tuesday earlier this month.

Saylor showed Bitcoin’s strong performance, arguing that it could act as an uncorrelated asset. He also pointed to MicroStrategy’s significant stock gains since its own adoption of Bitcoin as proof of the cryptocurrencies potential. However, he admitted Bitcoin’s volatility but explained that the investment was so small that the risks would only be negligible while the potential profits would be very significant.

He urged Microsoft to consider Bitcoin as an asset to boost market capitalization while mitigating financial risks for shareholders. Despite his best efforts however, Microsoft still chose to remain conservative and reject the proposal.

Keith Dolliver, Microsoft’s deputy general counsel, confirmed the rejection during the virtual shareholder meeting. The board argued that the proposal lacked sufficient evidence to justify adding cryptocurrencies as part of its financial strategy.

Institutional Shareholder Services and Proxy advisory firms Glass Lewis also supported the board’s position with the latter citing reports that questioned the reliability of cryptocurrency investments to deliver consistent returns.

Growing Advocacy for Bitcoin Adoption in Reserves

Although Microsoft rejected the motion, the push for Bitcoin adoption by institutions is gaining momentum. Bitcoin has surged this year, recently crossing its ATH of $100,000 which has intensified calls for companies to use it as a hedge against inflation.

While companies like MicroStrategy and Tesla have embraced Bitcoin, Microsoft has decided to stay on a more cautious course. The rejection of the Bitcoin treasury proposal signals the company’s skeptical approach toward cryptocurrency.

In other news, Amazon is considering investing into a Bitcoin reserve. Recently, the National Center for Public Policy Research (NCPPR), submitted a shareholder proposal with the option of investing up to 5% of its treasury ($88 billion) into Bitcoin, for consideration at Amazon’s annual shareholder meeting scheduled for April 2025.