Microsoft Set to Vote on Whether to Add Bitcoin to Its Treasury

An October 24th filing by Microsoft Corp. (MSFT) with the Securities and Exchange Commission (SEC) revealed a surprising item on the agenda for the company’s annual meeting on December 10th – the possibility that the software giant may add Bitcoin to its portfolio of held assets.

One of the proposals that will be discussed at the meeting is whether the tech behemoth should add BTC to its asset holdings to hedge against inflation and other macroeconomic concerns. Interestingly, the Microsoft Board has recommended that shareholders vote against the proposal.

In a statement, the board states that it has already carefully considered thetopic and that “past evaluations have included Bitcoin and other cryptocurrencies among the options considered, and Microsoft continues to monitor trends and developments related to cryptocurrencies to inform future decision-making,” further noting that this type of public assessment is “unwarranted.”

Between 2014 and 2018 Microsoft supported Bitcoin payments in its online Xbox store. Although he is no longer active on the company’s board, Microsoft founder Bill Gates’s opinions relating to Bitcoin have evolved over the years – from initial curiosity to notable skepticism.

In the early 2010s, he praised Bitcoin’s potential to make money transfers cheaper, particularly in developing regions. By 2018, however, he criticized its volatility and association with criminal activity, saying he would “short” Bitcoin if he could. In 2021, Gates grew increasingly concerned about Bitcoin’s environmental impact, noting its high energy consumption per transaction and aligning himself with digital currency solutions that are more eco-friendly. Today, Gates remains skeptical, seeing blockchain’s potential in applications that deliver social value but viewing Bitcoin as speculative, energy-intensive, and limited in real-world utility.

Even if shareholders were to vote ‘yes’ as a majority to the proposal, this outcome would be non-binding. US public companies allow shareholders to vote on important decisions at shareholder meetings. Special proposals like this one are typically non-binding and are more used to gauge shareholder sentiment and can be used to pressure companies to move in a particular direction.

Even if the Microsoft shareholder community votes in favor of adding BTC to the company’s armory of assets, there is no guarantee or obligation that this should happen. It would, however, be a powerful indicator of positive, on-the-ground sentiment amongst investors at one of the largest IT companies in the world.