Less than 1% of Microsoft Shareholders Support Bitcoin Investment Plan

TLDR

• Only 0.55% of Microsoft shareholders (28.23 million votes) supported the Bitcoin investment proposal, while 5.148 billion votes were cast against it
• The National Center for Public Policy Research proposed Microsoft allocate 1% of total assets to Bitcoin as an inflation hedge
• Microsoft’s board recommended against the proposal, citing Bitcoin’s volatility as a key concern
• The vote occurred during the annual shareholder meeting on December 10, 2024, as Bitcoin traded above $100,000
• MicroStrategy was highlighted as a contrasting example, having recently increased its Bitcoin holdings to 423,650 BTC valued at approximately $42 billion

In a clear demonstration of corporate sentiment toward cryptocurrency investment, Microsoft shareholders have decisively rejected a proposal to invest in Bitcoin. The vote, which took place at the company’s annual shareholder meeting on December 10, 2024, saw only 0.55% of shareholders supporting the initiative to add the digital currency to Microsoft’s balance sheet.

The proposal, put forward by the National Center for Public Policy Research, recommended that Microsoft allocate 1% of its total assets to Bitcoin as a hedge against inflation. However, the final tally showed just 28.234 million votes in favor, compared to 5.148 billion against, with 22.6 million abstentions.

Microsoft’s board of directors had urged shareholders to vote against the proposal before the meeting, expressing concerns about Bitcoin’s price volatility. During the shareholder meeting, the company stated, “Bitcoin is a more volatile asset at the moment than corporate bonds, so companies should not risk shareholder value by holding too much of it.”

The vote comes at a time when Bitcoin’s price has once again surpassed $100,000 per coin, highlighting both the potential rewards and risks associated with cryptocurrency investment. Despite recommending against the proposal, Microsoft acknowledged that companies should evaluate the benefits of holding at least 1% of their assets in Bitcoin.

The company’s Global Treasury and Investment Services team indicated they will continue monitoring trends related to Bitcoin and cryptocurrency to inform future decision-making. This stance suggests that while Microsoft isn’t ready to embrace Bitcoin investment now, they’re maintaining an open mind about future possibilities.

In the broader corporate landscape, several companies have recently moved to add Bitcoin to their balance sheets. Healthcare technology company Semler Scientific added $30 million in Bitcoin to its holdings this month, while Amazon is currently considering a recommendation to convert 5% of its assets into Bitcoin, with a decision expected in spring 2025.

The shareholder vote discussion highlighted MicroStrategy’s experience as the largest private Bitcoin holder. The software development firm recently acquired an additional $1.5 billion in Bitcoin, bringing its total holdings to 423,650 BTC, valued at approximately $42 billion.

According to the proxy statement,

“MicroStrategy—which, like Microsoft, is a technology company, but unlike Microsoft, holds Bitcoin on its balance sheet—has had its stock outperform Microsoft stock this year by 313% despite doing only a fraction of the business that Microsoft has.”

The statement also noted that institutional adoption of Bitcoin is becoming more common, pointing out that BlackRock, Microsoft’s second-largest shareholder, offers its clients a Bitcoin ETF.

Microsoft’s board emphasized that while they rejected the Bitcoin proposal, the company evaluates a wide range of assets for investment purposes. They specifically noted that volatility remains a key factor in evaluating cryptocurrency investments for corporate treasury applications.

The vote also included other proposed shareholder motions, including requests for reports on AI and misinformation/disinformation, as well as weapons development risks. These proposals also failed to pass.

Prediction markets had anticipated this outcome, with Polymarket bettors giving the motion only a 12-16% chance of being ratified.

The results align with Microsoft’s stated preference for stable and predictable investments that ensure liquidity and operational funding. The company maintains this position even as Bitcoin’s price has reached new highs and other corporations have embraced cryptocurrency investments.

With 22.6 million abstentions recorded, the voting results demonstrate a clear preference among Microsoft shareholders for traditional corporate treasury management approaches over cryptocurrency investment at this time.

The voting breakdown shows this was one of the most decisive shareholder votes in recent Microsoft history, with the 0.55% support rate ranking among the lowest for any major proposal put before shareholders.