As institutional interest in Bitcoin increases, technology giant Microsoft is also evaluating the BTC investment case.
The National Center for Public Policy Research (NCPPR), which supports the BTC investment proposal, made important statements regarding this proposal.
The NCPPR said that if Microsoft decides not to invest in Bitcoin and the BTC price increases, the company could face the risk of being sued by shareholders.
Ethan Peck, vice president of NCPPR’s Free Enterprise Project, said in a statement that the proposal could put the company in a difficult position if it decides not to invest in Bitcoin.
“If Microsoft does not explicitly and publicly allow Microsoft shareholders to purchase Bitcoin after the proposal, and Bitcoin gains value (which it likely will), shareholders may have good grounds to sue the Company.”
Comparing Microsoft with MicroStrategy, which stands out with its BTC investment, Ethan Peck said, “Microstrategy's stock, which is a technology company like Microsoft but has Bitcoin on its balance sheet, has outperformed Microsoft stock by 313% despite doing only a fraction of the business that Microsoft does.”
The NCPPR also noted in its assessment that since Bitcoin is an excellent, if not the best, hedge against inflation, and corporate bond yields are lower than the actual inflation rate, companies should not risk shareholder value by ignoring Bitcoin altogether.
*This is not investment advice.