If Microsoft ignores Bitcoin, it risks shareholder lawsuits and price increases – NCPPR
According to the Center for Policy Research, which is driving the proposal, Microsoft could be sued by shareholders if it ultimately decides not to invest in bitcoin and its price rises.
In December, Microsoft shareholders will vote on whether the company should conduct a review to invest in Bitcoin (BTC). The idea is being pushed by the National Center for Public Policy Research (NCPPR).
Ethan Peck, deputy director of the NCPPR Free Enterprise Project, said in a statement to Cointelegraph that the proposal could put the organization in a tight spot if it is not ultimately about investing in cryptocurrency.
“So if Microsoft publicly and openly decides in this assessment (based on skepticism and moral turpitude) that it is not in the best interest of Microsoft's shareholders to buy any bitcoins, and then bitcoins increase in value (as they can), then shareholders may have grounds to sue the company,” Peck said.
NCPPR Supporter's Statement for Microsoft to Conduct a Review on Investing in Bitcoin Source: United States Securities and Exchange Commission
Microsoft's board is advising shareholders against it, saying it will review a “broad range of investable assets,” including bitcoin.
But Peck noted that even if the proposal fails, it “still opens up an important conversation” between Microsoft and its shareholders and could create the impetus for a strong re-entry in 2025.
“Whether this proposal passes or not, what Bitcoiners did last week by forcing Microsoft to pay attention to this is a very important step to bring about the desired results in Microsoft and other large companies.”
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The NCPPR describes itself as a “non-partisan, free-market, independent conservative think tank.”
The think tank said the microstrategy bitcoin investment strategy, a business intelligence company launched by Microsoft, has outperformed Microsoft by more than 300% this year “despite doing little of its work”.
He also said that institutional and corporate adoption is becoming “commonplace” through Bitcoin exchange-traded funds.
Bitcoin is currently trading at $67,035 – down 8.8% from $73,562 six days ago as it nears setting a new all-time high.
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