Could Microsoft find itself in the sights of its own shareholders for not having invested in Bitcoin? The news brings this question back to us, as the technology giant finds itself under pressure ahead of a crucial vote in December, orchestrated by the National Center for Public Policy Research (NCPPR). At stake is a proposal which aims to officially assess the opportunity to invest in Bitcoin, an asset that is now essential on the global economic scene. As tech giants increasingly lean into cryptos, this situation places Microsoft at a strategic crossroads that could influence its relationship with its shareholders and affect its reputation.
A call to Microsoft's fiduciary duty
In December, Microsoft shareholders will vote on a proposal introduced by NCPPR, an independent research center focused on free enterprise. This proposal aims to force Microsoft to seriously evaluate the potential interest of an investment in Bitcoin. According to Ethan Peck, deputy director of NCPPR's Free Enterprise Project, “Microsoft has a fiduciary duty to its shareholders.” Peck precise that if Microsoft chooses to “publicly and explicitly determine that it is not in the best interests of the company's shareholders to purchase Bitcoin” and subsequently the price of Bitcoin increases significantly, this could justify a legal action by shareholders.
Microsoft, for its part, was quick to respond. In a statement to shareholders, the board of directors recommended voting against this proposal, and explained that the company is already evaluating “a wide range of investable assets”, including Bitcoin. However, NCPPR says this approach is insufficient, particularly in the face of the rise of companies adopting Bitcoin strategies, such as MicroStrategy, whose stock market performance has surpassed that of Microsoft, despite having a much lower volume of business.
Between Dialogue and Growing Pressures
This NCPPR proposal does not only target Microsoft. It opens a broader debate on the place of cryptos in the strategies of large companies. Ethan Peck said that “even if the proposal fails, it will have succeeded in opening 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 give visibility to supporters of investment in Bitcoin, both at Microsoft and in other companies in the technology sector.
Based on immediate financial issues, this pressure from shareholders could mark the start of an underlying trend, where listed companies would be encouraged to explore cryptos more seriously. As the first Bitcoin exchange-traded funds (ETFs) hit the market, this demand may well strengthen. If Microsoft were to ignore these calls and Bitcoin begins a new rise, this could cause tensions with its shareholders, but also strengthen the weight of pro-Bitcoin companies in the public debate.
As the world of technology companies gradually adapts to the crypto era, Microsoft may well be forced to review its strategic priorities under the effect of shareholder pressure. Whatever the outcome of the vote, the issue raised by the NCPPR has opened a relevant and unprecedented debate, which could influence other large companies. In this context, it remains to be seen whether Microsoft and its peers will ultimately turn to Bitcoin to satisfy both their shareholders and the demands of a rapidly changing digital economy.
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