Microsoft may face potential shareholder lawsuits if it decides against investing in Bitcoin and the cryptocurrency’s value subsequently rises, according to a policy research center supporting a proposal for the tech giant to consider Bitcoin.
In December, Microsoft shareholders are set to vote on whether the company should evaluate investing in Bitcoin, a proposal put forth by the National Center for Public Policy Research (NCPPR). Ethan Peck, deputy director of the NCPPR’s Free Enterprise Project, suggested that the proposal could legally pressure Microsoft. “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,” Peck stated.
Microsoft’s board has recommended that shareholders vote against the proposal, asserting that it already reviews a “wide range of investable assets,” including Bitcoin.
Peck indicated that even if the proposal is voted down, it has sparked an “important dialogue” with Microsoft and might lay the groundwork for a stronger proposal in 2025. “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,” he added.
The NCPPR, which identifies itself as a “non-partisan, free-market, independent conservative think tank,” cited MicroStrategy’s Bitcoin investment success as an example in its pitch to Microsoft, noting that MicroStrategy’s Bitcoin strategy has outperformed Microsoft by over 300% this year.
Bitcoin is currently trading at $67,035, down 8.8% from $73,562 six days ago when it nearly reached a new all-time high.
