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Microsoft Says No to Bitcoin Treasury Reserve in Shareholder Vote

Published
Prashant Jha
Published
By Prashant Jha
Edited by Insha Zia

Key Takeaways

  • Microsoft shareholders rejected a proposal to allocate 1% of its $78 billion in cash reserves to Bitcoin.
  • The board cited Bitcoin’s price volatility as the primary reason for opposing the move.
  • MicroStrategy’s co-founder warned Microsoft may regret this decision within five years.

Microsoft shareholders voted down a proposal to add Bitcoin (BTC) to the company’s balance sheet, dismissing hopes within the crypto community that the tech giant might follow in the footsteps of Bitcoin advocates like MicroStrategy.

Microsoft is Not Bitcoin Ready

The proposal, brought forth by the National Center for Public Policy Research, urged Microsoft to allocate 1% of its $78 billion in cash and marketable securities to Bitcoin as a hedge against inflation.

However, Microsoft’s board advised shareholders to oppose the move, citing Bitcoin’s notorious price volatility and the company’s preference for secure investment strategies.

Microsoft’s decision comes as 91 publicly traded companies worldwide , including MicroStrategy and Tesla, have added Bitcoin to their treasuries. These firms see Bitcoin as a long-term store of value despite its price fluctuations.

MicroStrategy co-founder Michael Saylor, a staunch Bitcoin proponent, pitched the idea directly to Microsoft’s shareholders.

Following the rejection, Saylor remarked , “In five years, Microsoft will realize that everyone buys Bitcoin at the price they deserve.”

Bitcoin’s Volatility: Risk or Opportunity?

Bitcoin’s price swings remain a divisive issue for institutional investors. Critics cite its unpredictability as a reason to avoid it, while proponents argue volatility is a feature of a nascent asset class.

Historical data supports the latter viewpoint. Bitcoin has consistently offered substantial returns on investment, especially after its halving cycles.

Over the past 15 years, Bitcoin’s value has grown from zero to over $104,000 despite significant market corrections triggered by events such as the Mt. Gox hack in 2014 or the FTX collapse in 2022.

MicroStrategy serves as a case study for long-term Bitcoin adoption.

Since its initial BTC purchase in 2020, the company has invested $26 billion in the cryptocurrency.

During the 2022 bear market, Bitcoin’s 70% price drop pushed MicroStrategy’s holdings into negative territory, sparking criticism.

Yet, the company’s steadfast strategy has paid off; within two years, its Bitcoin holdings are now generating a $15 billion profit.

A Missed Opportunity?

For Bitcoin maximalists, Microsoft’s rejection echoes the skepticism BTC faced in its early years when it was dismissed as a bubble.

Now, with its price nearing $100,000 and its adoption expanding, Bitcoin continues to solidify its position in the global financial landscape.

Whether Microsoft’s conservative approach will be vindicated or remembered as a missed opportunity remains to be seen.

For now, the tech giant’s stance highlights the persistent tension between traditional financial caution and the disruptive potential of cryptocurrencies.

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Prashant Jha

Prashant Jha is a crypto-journalist focused on the US and UK markets, his interests lie in blockchain technology and crypto adoption across emerging economies.
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