Microsoft could risk being sued by shareholders if it decides not to invest in Bitcoin and the price increases, according to a policy research center driving a proposal to consider the digital asset.
In December, Microsoft shareholders will vote on whether the company should conduct an assessment of investing in Bitcoin (BTC). The proposal is being pushed by the National Center for Public Policy Research (NCPPR).
In a statement sent to Cointelegraph, Ethan Peck, deputy director of the NCPPR’s Free Enterprise Project, said the proposal could put the firm in a tight spot if it ultimately decides not to invest in the cryptocurrency.
“So should Microsoft publicly and explicitly determine in this assessment (undoubtedly based on shaky and biased morale) that it’s not in the best interest of Microsoft shareholders to purchase any Bitcoin, and then Bitcoin proceeds to increase in value (as it likely will), then there may be grounds for shareholders to sue the Company,” said Peck.
NCPPR’s supporting statement for Microsoft to conduct an assessment of investing in Bitcoin. Source: United States Securities and Exchange Commission
Microsoft’s board is recommending that shareholders vote against it, arguing they already evaluate a “wide range of investable assets,” including Bitcoin.
Peck said that even if the proposal fails, “it still opened up an important dialogue” between Microsoft and its shareholders, and it could build momentum for a stronger resubmission in 2025. He added:
“Whether or not this proposal passes, what Bitcoiners have done over the past week in forcing Microsoft to pay attention to this has been a massively important step toward the desired outcome of the proposal, at Microsoft and other large companies.”
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NCPPR describes itself as a “non-partisan, free-market, independent conservative think tank.”
In its initial pitch to Microsoft, the research center highlighted business intelligence firm MicroStrategy’s Bitcoin investment strategy, noting that it has outperformed Microsoft by over 300% this year “despite doing a fraction of the business” of Microsoft.
It also said that institutional and corporate adoption is becoming more “commonplace” through spot Bitcoin exchange-traded funds.
At the time of writing, Bitcoin was trading at $67,035 — down 8.8% from $73,562 six days ago when it came close to setting an all-time high.
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