Microsoft’s decision on Bitcoin could trigger shareholder lawsuit

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Key Takeaways

Microsoft shareholders will vote in December on a proposal driven by the NCPPR regarding Bitcoin investment.
NCPPR warns that Microsoft’s decision not to invest in Bitcoin could lead to shareholder litigation if Bitcoin’s value rises.

Microsoft shareholders will vote in December on whether the company should assess investing in Bitcoin, a proposal driven by the National Center for Public Policy Research (NCPPR).

According to a report by Cointelegraph, the NCPPR warns that Microsoft could face shareholder litigation if it decides against Bitcoin investment and the digital asset’s value subsequently rises.

“If Microsoft publicly decides it’s not in shareholders’ best interest to buy Bitcoin, and then Bitcoin’s value rises, shareholders may have grounds to sue,” Ethan Peck, deputy director of NCPPR’s Free Enterprise Project, told Cointelegraph.

Microsoft’s board has recommended shareholders vote against the proposal, stating they already evaluate a “wide range of investable assets,” including Bitcoin.

In its proposal to Microsoft, the NCPPR highlighted MicroStrategy’s Bitcoin investment strategy, noting that it has outperformed Microsoft by over 300% this year despite conducting a fraction of Microsoft’s business volume.

The research center also highlighted increasing institutional adoption through spot Bitcoin ETFs.

In October alone, BlackRock’s Bitcoin ETF reportedly acquired $4.6 billion in Bitcoin, bringing the ETF’s total valuation to $31 billion, according to data from Farside Investors and Arkham.

Collectively, Bitcoin ETFs now hold over $72 billion in market cap, underscoring the growing interest from institutions.