Microsoft Chooses Stability Over Bitcoin Investment Risks

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Bitcoin Rejected: Microsoft Chooses Stability Over Crypto Investment Risks

Written by Aaron S.,

Editor-In-Chief

Last Updated: December 10, 2024

Key Takeaways

Microsoft rejected a proposal to invest in Bitcoin, emphasizing the need for stable and predictable financial management practices;
The NCPPR argued Bitcoin adoption could drive long-term value, citing institutional acceptance, but Microsoft’s board remained unconvinced;
Microsoft prioritized stability, rejecting speculative crypto investments while affirming confidence in its existing treasury strategies.

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Bitcoin Rejected: Microsoft Chooses Stability Over Crypto Investment Risks

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During Microsoft’s annual shareholder meeting on December 10, a proposal introduced by the National Center for Public Policy Research (NCPPR) to incorporate Bitcoin BTC $89,288.90 into the company’s financial reserves as a strategic asset to enhance shareholder returns failed to gain approval.

The NCPPR’s motion showed urgency, warning that ignoring Bitcoin could result in missed opportunities. Nevertheless, the board maintained its stance, deeming the suggested public assessment unwarranted.

Microsoft showed its confidence in existing treasury management processes, prioritizing stability and long-term financial health over speculative investments.

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In a pre-recorded video presented at the meeting, the NCPPR emphasized Bitcoin’s potential, stating:

Microsoft can’t afford to miss the next technology wave, and Bitcoin is that wave.

The proposal pointed to the growing institutional acceptance of Bitcoin, highlighting Microsoft’s second-largest shareholder, BlackRock, which offers Bitcoin exchange-traded funds (ETFs). Additionally, it cited examples like MicroStrategy, a company known for its Bitcoin investments.

Acknowledging Bitcoin’s volatility, the NCPPR suggested a cautious approach. They recommended that Microsoft allocate 1% to 5% of its profits to Bitcoin acquisition and evaluate whether such a strategy would serve shareholders’ best interests in the long run.

In a formal filing with the US Securities and Exchange Commission (SEC), the board dismissed the resolution as unnecessary, noting that cryptocurrency investments are inherently unstable and unsuitable for corporate treasury functions requiring consistent liquidity.

The board affirmed that Microsoft already employs robust financial strategies to manage its resources and safeguard shareholder interests.

Microsoft's decision to steer clear of Bitcoin highlights the ongoing debate about cryptocurrency's role in corporate finance. Meanwhile, other industries are taking a different approach, like Virgin Voyages, which launched a cruise experience fueled by crypto. How is Bitcoin setting sail on the high seas? Read the full story.