Microsoft says ‘no’ to Bitcoin, corporates say ‘bring it on’

Microsoft shareholders have rejected the idea of ​​a Bitcoin treasury, but other major companies disagree with this strategy. Here’s why.

Bitcoin (BTC) is often likened to “digital gold” with its fixed supply of 21 million coins, making it a potential hedge against currency devaluation and inflation.

And today, Bitcoin’s unique properties make it an attractive addition to corporate treasuries. Cash can offset risk to traditional assets such as stocks and bonds.

Bitcoin is also one of the most liquid assets globally and its historical performance has shown significant value growth over the long term; It hit an all-time high of over $108,000 on December 17.

But there is no shortage of risks.

A board of directors may refrain from adopting a Bitcoin treasury due to the cryptocurrency’s extreme price volatility, which could lead to significant losses during a crisis. Additionally, regulatory uncertainties pose potential threats as governments develop crypto policies. Additionally, liquidity difficulties during market crashes can amplify price declines during asset unloading.

So it’s no surprise that on December 10, Microsoft’s board channeled co-founder Bill Gates’ long-standing crypto skepticism and recommended abandoning the Bitcoin treasury proposal. Gates himself famously dismissed crypto as “based on a 100% dumber theory” – ouch.

Bitcoin advocate and MicroStrategy President Michael Saylor was busy trying to impress Microsoft when he touted Bitcoin’s own meteoric returns and bragged about the rise of MicroStrategy shares in the wake of the BTC splurge. His speech? Bitcoin could also increase Microsoft’s market value while acting as a financial guardian angel.

Microsoft’s response? No thanks.

Meanwhile, at least 10 more companies are adopting the MicroStrategy playbook.

Genius Group

Genius Group, an AI-powered education group, announced in November that it had completed the purchase of 110 Bitcoins for $10 million at an average price of $90,932 per Bitcoin. The purchase fulfilled its promise to implement what it calls a “Bitcoin-first” strategy, in which it plans to keep 90% or more of its current and future reserves in Bitcoin, with an initial target of $120 million in Bitcoin.

Earlier this month, the company bolstered its Bitcoin stash by purchasing 194 Bitcoins worth $18 million at an average price of $92,728 per Bitcoin.

Genius Group CEO Roger Hamilton stated that Saylor’s Bitcoin treasury plan was an inspiration, adding that “more companies will see the benefits of establishing a Bitcoin treasury and will be equipped with clear steps to follow.”

business sport

Worksport, a US-based van solutions provider, is adding cryptocurrency to its corporate treasury strategy.

The Nasdaq-listed company announced on December 5 that it would add Bitcoin (BTC) and XRP (XRP) to its treasury holdings. This follows the decision of the company’s board of directors to approve the initial purchase of $5 million worth of BTC and XRP.

The announcement stated that Worksport will allocate 10% of its excess operating cash to this corporate pivot.

“Our upcoming adoption of Bitcoin (BTC) and XRP (Ripple) reflects our commitment to staying ahead of market trends while prioritizing operational efficiency and shareholder value,” said Steven Rossi, Worksport’s CEO. He said it has the potential to be a strategic complement.

Amazon

Amazon shareholders, led by the National Center for Public Policy Research, are urging the Seattle-based company’s board to consider the potential benefits of adding Bitcoin to the company’s financial strategy.

The proposal, submitted on December 6, aims to explore whether Bitcoin can preserve shareholder value, especially in an environment of persistent inflation and declining returns from traditional assets.

The National Center highlights Bitcoin’s strong performance (131% growth in the past year and 1,246% growth over five years) as evidence of its potential as an inflation hedge and growth asset. The initiative also highlights concerns about the diminishing purchasing power of Amazon’s $88 billion in cash reserves due to inflation averaging 4.95% over the past four years.

This movement represents a broader trend of shareholder proposals influencing corporate policies, addressing economic risks by leveraging shareholder rights, and advocating financial strategies that increase long-term value.

MicroStrategy

Perhaps the most vocal among Bitcoin fans is MicroStrategy’s Saylor, who brought the company’s total assets to 439,000 as of last week.

As a result, Saylor has officially strengthened MicroStrategy’s position as the largest institutional BTC holder, considering MicroStrategy to be a long-term store of value.

During an appearance on the Dec. 18 episode of Open Interest on Bloomberg Television, Saylor even expressed a desire to advise President-elect Donald Trump on creating digital assets policy for the United States.

But Saylor continues to scrutinize: Analyst Jacob King labeled MicroStrategy’s Bitcoin-focused business model a “giant scam” and claimed it was unsustainable and doomed to collapse.

MicroStrategy’s business model is a giant scam and relies on a reflexive cycle: it issues debt or equity to buy BTC, which drives up the price of BTC. This increases MSTR’s market cap, increases its index weighting, and attracts more sheep investors. It occurs at a higher valuation… pic.twitter.com/Owyi7mCHAO

— Jacob King (@JacobKinge) December 17, 2024

Maraton Digital Holdings

Marathon, one of the largest Bitcoin mining companies, owns 44,394 BTC. The business model revolves entirely around mining Bitcoin and holding it as part of their assets.

In July, the company confirmed it would take a “full HODL approach” to its Bitcoin treasury policy, keeping all mining operations within its own operations in addition to open market purchases.

“Adopting a full HODL strategy reflects our confidence in the long-term value of Bitcoin,” said CEO Fred Thiel. “We believe Bitcoin is the world’s best treasury reserve asset and support the idea of ​​sovereign wealth funds holding it. “We encourage governments and companies to hold Bitcoin as a reserve asset.”

Tesla’s

Tesla first purchased $1.5 billion worth of Bitcoin in 2021 and currently owns 9,720 BTC. The company led by Elon Musk continues to be a significant owner.

BitcoinTreasuries data shows Tesla is the fourth-largest Bitcoin holder among U.S. public companies with crypto treasuries (MicroStrategy, MARA Holdings and Riot Platforms are believed to hold more).

In October, the electric vehicle company reportedly moved $765 million worth of Bitcoin to unidentified wallets.

coinbase

The cryptocurrency exchange holds 9,480 BTC as part of its reserves, strengthening its position as a major player in the digital asset ecosystem.

The firm, led by Brian Armstrong, holds large amounts of Bitcoin as exchanges and converters. It is also a reliable institution for custody services, and its clients include the Bitcoin ETF group consisting of BlackRock, Grayscale, 21Shares, Invesco, Valkyrie, Wisdom Tree and Franklin Templeton.

That’s why Coinbase has a Bitcoin treasury for itself and controls the others.

Hut 8 Mining Company

On Thursday, crypto.news reported that Bitcoin mining company Hut 8 added 990 Bitcoins to its reserves.

The company spent approximately $100 million to increase its total holdings to 10,096 BTC. Currently valued at over $1 billion, the reserve places Hut 8 among the largest institutional holders of Bitcoin worldwide.

Under the guidance of CEO Asher Genoot, the company purchased the coins at an average price of $101,710; this was significantly higher than the cumulative acquisition cost of $24,484 per Bitcoin.

Block Inc.

The startup (formerly Square) owns 8,027 BTC as part of its strategy to integrate Bitcoin into mainstream finance.

The company founded by Jack Dorsey is so optimistic about Bitcoin that last month it confirmed a company-wide push towards the cryptocurrency mining industry.

Block decided to focus on expanding its presence in the Bitcoin mining industry by reducing funding for music streaming service TIDAL and Sunset TBD, a startup focused on decentralizing the internet.

Block acquired TIDAL in 2021 for approximately $300 million. The platform continued to struggle, with reports showing workforce reductions and a $132.3 million impairment charge.

OneMedNet

OneMedNet Corp. owns approximately 34 Bitcoins as of November 12.

OneMedNet investor Off The Chain Capital was also inspired by Saylor, arguing that Bitcoin is not just a hedge but also a springboard for innovations in healthcare data.

Aaron Green, the company’s CEO, said: “By continuing to invest a portion of our assets in Bitcoin, we aim to not only maintain our financial stability, but also support continued development and innovation on our iRWD platform.”