Microsoft Recommends Shareholders Reject Proposal for Bitcoin Investment Citing Volatility Concerns

Microsoft Recommends Shareholders Reject Proposal for Bitcoin Investment Citing Volatility Concerns

Microsoft is urging shareholders to oppose a proposal from the National Center for Public Policy Research that suggests adding Bitcoin to its treasury holdings. In a filing on Thursday, Microsoft’s board argued that investing in Bitcoin is not aligned with the company’s long-term objectives, emphasizing that their management has already thoroughly evaluated cryptocurrency options.

The company clarified that its decision-making process includes assessing trends in cryptocurrency markets and that it remains open to revisiting the option if conditions change. Microsoft’s board highlighted the need for stability and predictability in corporate treasury investments, given that these funds support liquidity and operations. They also underscored that the suggested Bitcoin assessment is unnecessary as the board “already carefully considers this topic.”

Microsoft’s major shareholders—Vanguard, BlackRock, and State Street—will consider the high volatility associated with cryptocurrencies as they evaluate the proposal. “Microsoft has strong and appropriate processes in place to manage and diversify its corporate treasury, serving the long-term interests of its shareholders,” the board stated.

The National Center for Public Policy Research, which intends to present the proposal at Microsoft’s annual meeting on December 10, cited MicroStrategy’s 300% stock performance this year following its Bitcoin adoption. They argued that such a strategy could be beneficial for Microsoft, especially with corporate adoption of Bitcoin on the rise, noting that BlackRock, Microsoft’s second-largest shareholder, now offers a Bitcoin ETF. The think tank proposed that companies should consider investing at least 1% of their assets in Bitcoin as part of a diversification strategy.