Microsoft shareholders vote against Bitcoin treasury proposal

On December 10, Microsoft shareholders voted against a proposal to add Bitcoin to the company’s treasury holdings. The proposal, put forth by the National Center for Public Policy Research, aimed to position Bitcoin as a hedge against inflation and a transformative financial asset. However, the Microsoft board recommended rejecting the measure, and the shareholders followed suit, opting against the move.

The board’s stance echoed concerns that have long been voiced by Bill Gates, Microsoft’s co-founder, who has been a vocal critic of cryptocurrencies. Gates has repeatedly described digital assets as speculative and risky, dismissing the trend surrounding them as being “100% based on greater fool theory,” meaning it’s based on the assumption that someone else will buy the asset for a higher price.

In an attempt to sway Microsoft’s decision, Michael Saylor, the chairman of MicroStrategy, which has heavily invested in Bitcoin, campaigned for the adoption of the cryptocurrency. Saylor presented Bitcoin as an uncorrelated, high-performing asset that could provide significant long-term value. He also highlighted MicroStrategy’s stock gains since the company’s Bitcoin purchases, arguing that adopting Bitcoin could enhance Microsoft’s market capitalization and reduce financial risks.

Despite these efforts, Microsoft ultimately decided to maintain a more cautious approach, rejecting the proposal. This decision contrasts with the actions of other companies, such as MicroStrategy and Tesla, which have integrated Bitcoin into their treasury holdings, viewing it as a store of value and a potential asset for future growth.

For now, Microsoft remains conservative in its approach to Bitcoin, preferring to avoid the volatility and risks associated with the cryptocurrency market. The decision to reject the Bitcoin proposal reflects a broader trend among traditional companies that remain cautious about the integration of digital assets into their core financial strategies.