Microsoft Shareholders Vote Down Bitcoin Investment Proposal

Microsoft shareholders recently voted against a proposal to add Bitcoin (BTC) to the company’s balance sheet during its annual meeting on December 10. The resolution, put forward by the National Center for Public Policy Research (NCPPR), a Washington, D.C.-based think tank, suggested that Microsoft diversify its investments by using 1% to 5% of its profits to buy Bitcoin.

The NCPPR said the proposal aims to increase shareholder value by expanding profit sources.

The proposal highlighted Bitcoin’s volatility but argued against ignoring it entirely, citing examples like MicroStrategy and BlackRock’s Bitcoin adoption. It recommended that Microsoft evaluate whether holding Bitcoin would be beneficial in the long term, with the caveat of avoiding excessive exposure due to Bitcoin’s price fluctuations.

Alongside the proposal, MicroStrategy co-founder Michael Saylor urged Microsoft to convert its cash flow, dividends, debt, and stock buybacks into Bitcoin. He claimed that adopting Bitcoin could add up to $5 trillion to Microsoft’s market capitalization.

Shareholders Reject BTC Investment Proposal

Microsoft’s board dismissed Saylor’s advice and the NCPPR proposal, labeling it “unnecessary” in a 14A filing with the U.S. Securities and Exchange Commission (SEC). The board emphasized that the company considers such matters carefully and has established processes to manage and diversify its treasury for the long-term benefit of shareholders.

“Microsoft has strong and appropriate processes in place to manage and diversify its corporate treasury for the long-term benefit of shareholders,” the board stated.

It also acknowledged that while Microsoft and MicroStrategy share some operational similarities, the two companies have different strategies regarding cryptocurrency.

NCPPR Proposes BTC Investment to Amazon

In a related move, the NCPPR also submitted a proposal similar to Amazon’s on December 8.

This will be reviewed at Amazon’s shareholder meeting in April 2025. The think tank argued that the current inflation rate of 4.95% is eroding Amazon’s $88 billion in cash and short-term assets and suggested Bitcoin as a potential hedge to protect shareholder value.