Key Takeaways
- Microsoft shareholders will vote in December on a National Center for Public Policy Research proposal to assess Bitcoin investment, citing fiduciary duty to maximize shareholder value.
- The NCPPR warns that if Microsoft rejects Bitcoin and its value rises, shareholders could potentially sue for neglecting financial interests.
- Microsoft’s board opposes the proposal, arguing it already evaluates diverse assets, but NCPPR sees this vote as a crucial dialogue starter.
Microsoft Faces Shareholder Pressure Over Bitcoin Investment Proposal
The National Center for Public Policy Research (NCPPR) is urging Microsoft to consider Bitcoin investment as part of its financial strategy.
Microsoft shareholders will soon vote on an NCPPR-backed proposal to assess the company's potential for Bitcoin investment.
As a shareholder itself, the NCPPR argues that Microsoft has a fiduciary responsibility to act in the best financial interests of its shareholders.
If the vote passes, Microsoft would conduct an official assessment to determine whether Bitcoin investment aligns with shareholder interests.
Potential Lawsuit Threat for Ignoring Bitcoin
Ethan Peck, deputy director of the NCPPR’s Free Enterprise Project, said Microsoft could face legal risks if it overlooks Bitcoin in its asset evaluations:
'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.'
Microsoft’s board has recommended shareholders vote against the proposal, arguing that the company already evaluates a range of investment assets, including Bitcoin.
NCPPR’s Broader Strategy to Push Bitcoin Adoption
The NCPPR views the vote, regardless of its outcome, as a way to start a dialogue with Microsoft and potentially reintroduce the proposal in 2025.
Peck praised the Bitcoin community for driving Microsoft’s attention to Bitcoin as a viable corporate investment asset.
The NCPPR highlights business intelligence firm MicroStrategy’s notable Bitcoin success, emphasizing its outperformance of Microsoft despite smaller operational scale.
With Bitcoin adoption increasing through institutional channels, NCPPR sees potential benefits in aligning Microsoft with this trend.
