According to the policy research center pushing the proposal, Microsoft could potentially face lawsuits from shareholders if it chooses not to invest in Bitcoin and the cryptocurrency’s price subsequently increases. In December, Microsoft shareholders are set to vote on whether the company should evaluate the possibility of investing in Bitcoin (BTC). This proposal is being championed by the National Center for Public Policy Research (NCPPR).
Ethan Peck, Deputy Director of NCPPR’s Free Enterprise Project, warned in a statement to Cointelegraph that the company might find itself in a difficult situation if it ultimately decides against investing in the digital currency. “If Microsoft publicly and explicitly concludes in this assessment (likely based on unstable and biased morale) that it’s not in the best interest of Microsoft shareholders to purchase any Bitcoin, and then Bitcoin’s value increases (as it likely will), there may be grounds for shareholders to sue the company,” Peck stated.
Microsoft’s board is currently advising shareholders to vote against the proposal, arguing that they already consider a “wide array of investable assets,” including Bitcoin. However, Peck contends that even if the proposal is rejected, it has already initiated an important conversation between Microsoft and its shareholders, potentially paving the way for a more forceful resubmission in 2025.
The NCPPR identifies itself as a “non-partisan, free-market, independent conservative think tank.” In its initial proposal to Microsoft, the research center underscored the successful Bitcoin investment strategy of business intelligence firm MicroStrategy, which has outperformed Microsoft by over 300% this year, despite conducting a fraction of Microsoft’s business. It further noted that institutional and corporate adoption of Bitcoin is becoming increasingly “commonplace” via spot Bitcoin exchange-traded funds.
At present, Bitcoin is trading at $67,035 — an 8.8% decrease from $73,562 six days ago when it was nearing a new all-time high.