Wed 6 November 2024 ▪
5
min reading ▪ acc
Could Microsoft be in the crosshairs of its own shareholders for not investing in Bitcoin? The news brings the question back to us as the tech giant finds itself under pressure ahead of a crucial vote in December hosted by the National Center for Public Policy Research (NCPPR). At stake is a proposal to officially review the opportunity to invest in Bitcoin, an asset that is now essential on the global economic scene. As tech giants increasingly rely on cryptocurrencies, this situation puts Microsoft at a strategic crossroads that could affect its relationship with its shareholders and affect its reputation.
Microsoft Fiduciary Duty Call
In December, Microsoft shareholders will vote on a proposal presented by NCPPR, an independent think tank focused on free enterprise. This proposal aims to force Microsoft to seriously evaluate the potential interest in investing in Bitcoin. According to Ethan Peck, deputy director of the Free Enterprise Project NCPPR, “Microsoft has a fiduciary duty to its shareholders.” Peck says that if Microsoft decides to “publicly and explicitly determine that it is not in the best interest of the company’s shareholders to buy Bitcoin” and subsequently the price of Bitcoin increases significantly, it could justify shareholder legal action.
Microsoft was quick to respond. In a statement to shareholders, the board recommended voting against the proposal, explaining that the company is already evaluating a “broad range of investable assets,” including bitcoin. However, the NCPPR says this approach is insufficient, especially given the rise of companies adopting bitcoin strategies, such as MicroStrategy, whose stock market performance has outpaced that of Microsoft despite having much lower trading volume.
Between dialogue and growing pressures
This NCPPR proposal does not only target Microsoft. It opens a wider debate about the place of cryptocurrencies in the strategies of large companies. Ethan Peck said that “even if the proposal fails, it will succeed in starting an important dialogue between Microsoft and its shareholders,” raising awareness that could bear fruit in a future vote. The fact that the debate is now on the table could thus raise the profile of supporters of Bitcoin investment, both at Microsoft and in other companies in the technology sector.
Based on immediate financial concerns, this shareholder pressure could mark the beginning of an underlying trend where listed companies are encouraged to explore cryptocurrencies more seriously. Once the first Bitcoin exchange-traded funds (ETFs) hit the market, this demand may well intensify. If Microsoft ignores these calls and Bitcoin begins a new rise, it could cause tension among its shareholders, but also strengthen the weight of pro-Bitcoin companies in the public debate.
As the tech world gradually adapts to the cryptocurrency era, Microsoft may be forced to rethink its strategic priorities under pressure from shareholders. Whatever the outcome of the vote, the issue raised by the NCPPR has opened up a relevant and unprecedented debate that could affect other major companies. In this context, it remains to be seen whether Microsoft and its peers will eventually turn to Bitcoin to satisfy both their shareholders and the demands of the rapidly changing digital economy.
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A graduate of Sciences Po Toulouse and holder of the blockchain consultant certification issued by Alyra, I joined the Cointribune adventure in 2019. Convinced of the potential of blockchain to transform many sectors of the economy, I made a commitment to raise awareness and inform the general public about this ever-evolving ecosystem. My goal is to enable everyone to better understand blockchain and take advantage of the opportunities it offers. Every day I try to provide an objective analysis of current events, decipher market trends, convey the latest technological innovations and put into perspective the economic and social problems of this ongoing revolution.
DISCLAIMER OF LIABILITY
The comments and opinions expressed in this article are solely those of the author and should not be considered investment advice. Before making any investment decision, do your own research.