Outside Source
Microsoft has a “fiduciary duty” to do what is in the financial interests of shareholders and knocking back Bitcoin could go against those interests, a policy research center executive explained.
Follow up
Microsoft could risk being sued by shareholders if it ultimately determines not to invest in Bitcoin and the price rises, according to the policy research center driving the proposal.
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 says 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 into investing in Bitcoin. Source: United States Securities and Exchange Commission
Microsoft’s board is already recommending shareholders to vote against it, arguing they already evaluate a “wide range of investable assets,” including Bitcoin.
However, Peck says 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, Peck explained.
“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.”
Related: Big Tech produced more carbon since 2019 than all Bitcoin mining ever
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 and 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.
Bitcoin is currently trading at $67,035 — down 8.8% from $73,562 six days ago when it came close to setting a new all-time high.
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This article first appeared at Cointelegraph.com News
