As institutional interest in Bitcoin continues to grow, tech powerhouse Microsoft is exploring the potential of investing in the leading cryptocurrency.
The National Center for Public Policy Research (NCPPR), which advocates for the proposal to invest in Bitcoin, has shared significant insights regarding Microsoft’s decision-making process.
According to the NCPPR, if Microsoft opts against investing in Bitcoin and the cryptocurrency’s price subsequently rises, the company may expose itself to lawsuits from shareholders.
Ethan Peck, the vice president of NCPPR’s Free Enterprise Project, highlighted that failing to provide a pathway for shareholders to purchase Bitcoin could lead to legal challenges if the cryptocurrency appreciates in value.
Peck stated, “If Microsoft does not publicly permit its shareholders to buy Bitcoin following the proposal and Bitcoin rises in value—something that is likely—shareholders may find legitimate reasons to take legal action against the company.”
He also drew a comparison between Microsoft and MicroStrategy, a technology firm known for its significant Bitcoin investments. Peck noted that MicroStrategy’s stock has outperformed Microsoft’s by an impressive 313%, despite its smaller scale of business operations.
Furthermore, the NCPPR emphasized that Bitcoin serves as a strong hedge against inflation. With corporate bond yields trailing behind the actual inflation rate, they argue that companies should not overlook Bitcoin, as doing so could jeopardize shareholder value.
Note: This is not investment advice.