Microsoft shareholders have voted against a proposal to add Bitcoin to the company’s treasury holdings. 

The decision, announced on December 10, followed the board’s recommendation to reject the measure, which was introduced by the National Center for Public Policy Research.

The proposal advocated for Bitcoin to be used as a hedge against inflation and a transformative financial asset.

However, Microsoft’s board expressed skepticism, echoing concerns previously voiced by co-founder Bill Gates, who has criticized cryptocurrencies as speculative and risky. Gates has described the trend surrounding digital assets as being “100% based on greater fool theory.”

Michael Saylor’s pitch to Microsoft

MicroStrategy Chairman Michael Saylor had campaigned to sway Microsoft shareholders, promoting Bitcoin as a high-performing, uncorrelated asset. 

In a presentation Microsoft’s board earlier this month, Saylor highlighted Bitcoin’s potential to outpace traditional investments, citing MicroStrategy’s substantial stock gains following its Bitcoin acquisitions. 

Saylor argued that Bitcoin adoption could enhance Microsoft’s market capitalization while mitigating financial risks.

Despite these efforts, Microsoft opted for a more conservative approach. This decision contrasts with companies like MicroStrategy and Tesla, which have integrated Bitcoin into their treasury holdings.