Microsoft shareholders nixed a Bitcoin treasury idea, but other big-name 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 nowadays, Bitcoin’s unique characteristics make it an attractive addition to corporate treasuries. It can balance exposure to traditional assets like cash, stocks, and bonds.
Bitcoin is also one of the most liquid assets globally, and its historical performance has shown significant long-term value appreciation — it reached an all-time high of over $108,000 on Dec. 17.
But there’s no shortage of risks.
A board might avoid adopting a Bitcoin treasury due to the coin’s extreme price volatility, which can lead to substantial losses during downturns. Also, regulatory uncertainties pose potential threats as governments refine crypto policies. Additionally, liquidity challenges during market slumps can amplify price drops when offloading assets.
So it’s no wonder that, on Dec. 10, Microsoft’s board channeled the long-standing crypto skepticism of its co-founder, Bill Gates, and recommended ditching the proposa for a Bitcoin trasury. Gates himself has famously dismissed crypto as “100% based on greater fool theory” — ouch.
Bitcoin evangelist and MicroStrategy Chairman Michael Saylor was busy trying to woo Microsoft when he touted Bitcoin’s own meteoric returns and bragged about MicroStrategy’s stock soaring after their BTC splurge. His pitch? Bitcoin could boost Microsoft’s market cap while acting as a financial guardian angel.
Microsoft’s response? No, thanks.
Meanwhile, at least 10 other companies are embracing the MicroStrategy playbook.
Table of Contents
- Genius Group
- Worksport
- Amazon
- MicroStrategy
- Marathon Digital Holdings
- Tesla
- Coinbase
- Hut 8 Mining Corp
- Block Inc.
- OneMedNet
Genius Group
Genius Group, an AI-powered education group, announced in November that it had completed the purchase of 110 Bitcoin for $10 million, at an average price of $90,932 per Bitcoin. The purchase made good on a promise to employ what it called a “Bitcoin-first” strategy where it planed to commit 90% or more of its current and future reserves to be held in Bitcoin, with an initial target of $120 million in Bitcoin.
Earlier this month, the company bolstered its Bitcoin treasury by acquiring 194 Bitcoin worth $18 million at an average price of $92,728 per Bitcoin.
Genius Group CEO Roger Hamilton credited Saylor’s Bitcoin treasury plan for the inspiration, adding that “more companies will see the benefits of establishing a Bitcoin treasury, and will be equipped with the clear steps to follow.”
Worksport
Worksport, a U.S.-based provider of pickup truck solutions, is adding cyptocurency to its corporate treasury strategy.
The Nasdaq-listed company announced on Dec. 5 that it would be adding Bitcoin (BTC) and XRP (XRP) to its treasury assets. This follows a resolution by the company’s board of directors, which approved an initial purchase of $5 million worth of BTC and XRP.
Worksport is committing 10% of its excess operational cash to this corporate pivot, it said in the announcement.
“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. As we expand our product offerings and global reach, cryptocurrency has the potential to be a strong strategic complement,” Steven Rossi, chief executive officer of Worksport, said.
Amazon
Amazon shareholders, led by the National Center for Public Policy Research, are urging the Seattle-based company’s board to assess the potential benefits of adding Bitcoin to the company’s financial strategy.
The proposal, submitted on Dec. 6, aims to explore whether Bitcoin could protect and enhance shareholder value, especially amid persistent inflation and declining yields from traditional assets.
The National Center emphasizes Bitcoin’s robust performance—131% growth in the past year and 1,246% over five years—as evidence of its potential as an inflation hedge and a growth asset. The initiative also highlights concerns about the diminishing purchasing power of Amazon’s $88 billion cash reserves due to average inflation of 4.95% over the past four years.
This move represents a broader trend of shareholder proposals influencing corporate policies, leveraging shareholder rights to advocate for financial strategies that address economic risks and enhance long-term value.
MicroStrategy
Perhaps the most vocal of all Bitcoin fans is MicroStrategy’s Saylor who, as of this past week, increased the company’s total holdings to 439,000.
As a result, Saylor has officially strengthening MicroStrategy’s position as the top corporate BTC holder, considering it a long-term store of value.
Saylor, during an appearance on the Dec. 18 episode of the Open Interest show on Bloomberg Television, even voiced his willingness to advise President-elect Donald Trump on crafting a digital assets policy for the U.S.
But Saylor continues to draw scrutiny: Analyst Jacob King has labeled MicroStrategy’s Bitcoin-focused business model a “giant scam,” claiming it is unsustainable and destined for collapse.
MicroStrategy’s business model is a giant scam and relies on a reflexive loop: it issues debt or equity to buy BTC, which drives BTC’s price higher. This increases MSTR’s market cap, boosts its index weight, and attracts more sheep investors. With a higher valuation, it issues… pic.twitter.com/Owyi7mCHaO
— Jacob King (@JacobKinge) December 17, 2024
Marathon Digital Holdings
As one of the largest Bitcoin mining companies, Marathon owns 44,394 BTC. Its business model revolves entirely around mining and holding Bitcoin as part of its assets.
Back in July, the company confirmed it will adopt “a full HODL approach” towards its Bitcoin treasury policy, retaining all that it mines within its operations, in addition to its open market purchases.
“Adopting a full HODL strategy reflects our confidence in the long-term value of bitcoin,” CEO Fred Thiel stated. “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 corporations to all hold bitcoin as a reserve asset.”
Tesla
Tesla initially bought $1.5 billion worth of Bitcoin in 2021 and currently holds 9,720 BTC. While the Elon Musk-led company remains a significant corporate holder.
BitcoinTreasuries data shows that Tesla is the fourth-largest holder of Bitcoin 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, leveraging its position as a major player in the digital asset ecosystem.
The Brian Armstrong-led firm holds large amounts of Bitcoin as an exchange and converter. It’s also a trusted institution for custody services, and counts the Bitcoin ETF coterie of BlackRock, Grayscale, 21Shares, Invesco, Valkyrie, Wisdom Tree and Franklin Templeton among its clients.
Therefore, Coinbase has a Bitcoin treasury for itself and oversees others.
Hut 8 Mining Corp
On Thursday, crypto.news reported that Hut 8, a Bitcoin mining company, added 990 Bitcoin to its reserves.
The company spent roughly $100 million to increase its total holdings to 10,096 BTC. The reserve, now valued at over $1 billion, places Hut 8 among the largest corporate Bitcoin holders globally.
The company, under the guidance of CEO Asher Genoot, purchased the coins at an average price of $101,710, significantly higher than its cumulative acquisition cost of $24,484 per Bitcoin.
Block Inc.
The startup (formerly Square) holds 8,027 BTC as part of its strategy to integrate Bitcoin into mainstream finance.
The Jack Dorsey-founded company is so bullish on Bitcoin that, last month, it confirmed a company-wide pivot towards the cryptocurrency mining sector.
Block decided to dial down resources towards music streaming service TIDAL, and sunset TBD, a venture focusing on decentralizing the internet, to focus on expanding its presence in the Bitcoin mining sector.
Block acquired TIDAL in a 2021 acquisition for roughly $300 million. The platform has continued to struggle, with reports indicating workforce reductions and a $132.3 million impairment charge.
OneMedNet
OneMedNet Corp., as of Nov. 12, owns some 34 Bitcoins.
Off The Chain Capital, an investor in OneMedNet, was also inspired by Saylor, betting that Bitcoin isn’t just a hedge but a springboard for its healthcare data innovation.
Aaron Green, the company’s CEO, stated, “By continuing to invest a portion of our assets into Bitcoin, we aim to not only safeguard our financial stability but also fuel the ongoing development and innovation within our iRWD platform.”
