Microsoft Shareholders Reject Bitcoin Reserve Plan, Citing Volatility Concerns

In a result that will come as a surprise to no one — other than perhaps the most die-hard Bitcoin maxis — Microsoft shareholders have voted against a proposal that the company’s board consider investing in the OG cryptocurrency. The vote came during Microsoft’s annual meeting held on December 10.

The no vote follows the Microsoft board’s formal shareholder recommendation to oppose the proposal, which stated it had already carefully considered investing in Bitcoin and decided it was too volatile.

The proposal to invest in Bitcoin came from the conservative think-tank, the National Center for Public Policy Research (NCPPR), which is more well known for its advocacy work on climate change denialism. NCPPR also sat on the advisory board for Project 2025, the policy group closely linked to the MAGA movement and incoming US president Donald Trump.

Related: SEC Filing Reveals Microsoft Shareholders to Vote on Investment in Bitcoin

Proposal Largely Based on FOMO and Hedging Inflation

The proposal, which was titled “Assessment of Investing in Bitcoin”, largely focussed on the potential gains Microsoft could make if it got into Bitcoin now. In it, NCPPR acknowledged Bitcoin’s volatility and advised against holding too much of it, but also argued that completely ignoring it would risk missing out on big gains for shareholders. 

The group also argued that Bitcoin serves as an excellent hedge against inflation, helping to offset risk presented by any future collapse in the value of fiat currencies such as the US dollar. The group had recommended Microsoft spend 1-5% of its profits on accumulating Bitcoin.

During the shareholder meeting a pre-recorded video from NCPPR was played to try to sway shareholders. The group attempted to generate FOMO, opening its video with the line: “Microsoft can’t afford to miss the next technology wave, and Bitcoin is that wave.” 

It’s the same message shared by MicroStrategy CEO and Bitcoin advocate, Michael Saylor, who told the Microsoft board last week that: “Microsoft can’t afford to miss the next technology wave, and Bitcoin is that wave.”

Alas, all the talk of huge gains and inflation hedging wasn’t enough to convince either Microsoft’s board or shareholders — the software giant will be staying out of the crypto game for the time being.

NCPPR also submitted a similar proposal to the board of Amazon just a few days ago, that proposal will be considered at Amazon’s shareholder meeting in April next year. 

Crypto Community Reacts to The Vote

Unsurprisingly, many in the crypto community didn’t agree with the Microsoft shareholders’ decision and set to work mocking them on X / Twitter.

A user named @CarlBMenger, who describes himself as “Stoic Bitcoin Chief HODLer” likened the shareholders to a bunch of confused orangutans:

Just a bunch of #Microsoft Shareholders looking at each other. pic.twitter.com/3Q6FlXUAXR

— Carl ₿ MENGER ⚡️🇸🇻 (@CarlBMenger) December 10, 2024

@BitcoinArchive compared the decision to Microsoft’s famously terrible misreading of the iPhone’s future success:

Microsoft said 'NO' to buying #Bitcoin

They also said no to the smartphone when Steve Jobs launched the iPhone.

That turned out well for them… 😅 pic.twitter.com/GuIagEC5zk

— Bitcoin Archive (@BTC_Archive) December 10, 2024

Some other users voice support. A user named Michael Fowlie weighed in to say it makes sense, that shareholders would have concerns about Bitcoin increasing the firm’s risk exposure without much upside:

Why would MSFT buy BTC? They aren’t in that business. They actually have net negative USD.

Buying BTC would increase volatility without increasing alpha.

— Michael Fowlie (@mwfowlie) December 10, 2024