- Microsoft shareholders rejected a proposal to allocate up to 5% of profits to Bitcoin investments, emphasizing concerns over volatility and liquidity.
- This decision reflects a broader corporate hesitance toward integrating cryptocurrencies into financial strategies amidst uncertain economic conditions.
Microsoft‘s shareholders have taken a firm stance on cryptocurrencies, delivering a resounding “no” to a proposal that sought to integrate Bitcoin into the company’s financial reserves.
The proposal, spearheaded by the National Center for Public Policy Research (NCPPR), aimed to allocate between 1% and 5% of Microsoft’s profits to Bitcoin, presenting the initiative as a forward-looking strategy to diversify assets and prepare for what proponents described as “the next technological wave.”
During the company’s annual general meeting on December 10, the NCPPR presented its case with a meticulously prepared video presentation. The argument centered on Bitcoin‘s potential to mitigate inflation risks and shield against the depreciation of traditional assets.
Proponents highlighted projections suggesting that such a move could add trillions of dollars in value to Microsoft’s market capitalization. The presentation framed Bitcoin not as a speculative asset but as a strategic hedge in an era of monetary instability.
However, Microsoft’s board firmly opposed the proposal. Their rationale, outlined in a statement to the U.S. Securities and Exchange Commission (SEC), underscored Bitcoin‘s notorious volatility as a critical deterrent.
The board emphasized the need for corporate treasuries to maintain stability and predictability—qualities they argued Bitcoin could not guarantee. Liquidity requirements tailored to operational demands further compounded their reservations. Guided by these considerations, shareholders overwhelmingly sided with the board, rejecting the motion.
This decision places Microsoft alongside other cautious corporate giants who remain hesitant about embracing cryptocurrencies. While some companies, such as MicroStrategy, have made bold moves to adopt Bitcoin as a cornerstone of their financial strategies, Microsoft’s approach aligns with a conservative trend that prioritizes stability over risk.
MicroStrategy’s CEO, Michael Saylor, a staunch crypto advocate, even attempted to persuade Microsoft by highlighting the transformative potential of Bitcoin. Despite his efforts, the software giant stood firm.
Interestingly, Microsoft is not alone in facing such proposals. Amazon recently deferred a similar resolution, delaying its decision to April 2025. This reflects a widespread apprehension among large corporations about the unpredictable nature of cryptocurrencies.
Microsoft’s rejection of Bitcoin as a reserve asset underscores the growing divide between companies embracing crypto innovation and those prioritizing stability in an uncertain global economy.
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