As institutional interest in Bitcoin surges, U.S. tech giant Microsoft is evaluating a potential BTC investment. The National Center for Public Policy Research (NCPPR) recently made significant remarks regarding this proposal, stressing the possible risks for Microsoft if it decides not to invest.
Bitcoin Investment Risks for Microsoft
NCPPR, supporting the BTC investment proposal, has warned that Microsoft could face legal action from shareholders if it decides against buying Bitcoin and BTC’s price rises afterward. Ethan Peck, vice president of NCPPR’s Free Enterprise Project, stated that a decision to reject the investment proposal could leave the company vulnerable to shareholder lawsuits.
“If Microsoft fails to publicly allow its shareholders to invest in Bitcoin, and if BTC’s value increases (which is highly likely), shareholders would have a valid reason to sue the company,” Peck explained.
Comparing Microsoft to MicroStrategy
Ethan Peck also compared Microsoft’s position with that of MicroStrategy, another tech firm that has significantly invested in Bitcoin. “MicroStrategy, a company much smaller than Microsoft but holding Bitcoin on its balance sheet, has seen its stock outperform Microsoft by 313%,” Peck noted. This comparison highlights the potential opportunity costs Microsoft could face if it chooses not to engage with Bitcoin.
NCPPR further emphasized that Bitcoin serves as an exceptional hedge against inflation, which is especially relevant given that corporate bond yields currently fall below the real inflation rate. Ignoring Bitcoin, the NCPPR argues, could ultimately risk shareholder value.
For more updates on Bitcoin and corporate decisions surrounding crypto investments, follow Turkish NY Radio.
