Microsoft shareholders rejected a proposal for a Bitcoin treasury, yet several prominent companies support this approach. Here’s an exploration of the reasons behind the divide.

Bitcoin (BTC) is frequently referred to as “digital gold,” largely due to its limited supply of 21 million coins, which positions it as a potential safeguard against currency devaluation and inflation.

Presently, Bitcoin’s distinctive attributes render it a compelling choice for corporate treasuries, serving to diversify exposure to conventional assets such as cash, stocks, and bonds.

Bitcoin also stands out as one of the most liquid assets worldwide, exhibiting a strong historical performance with significant long-term value increase — reaching an all-time high of over $108,000 on Dec. 17.

However, various risks accompany this asset.

A board may hesitate to implement a Bitcoin treasury owing to the cryptocurrency’s pronounced price fluctuations, potentially resulting in considerable losses during market downturns. Furthermore, regulatory uncertainties may present threats as governments continue to refine their crypto frameworks. During market downturns, liquidity issues can also exacerbate price declines when attempting to liquidate assets.

It is thus unsurprising that on Dec. 10, Microsoft’s board echoed the long-standing skepticism of its co-founder, Bill Gates, by recommending against the Bitcoin treasury proposal. Gates has notoriously dismissed cryptocurrency as “100% based on greater fool theory” — ouch.

In an effort to persuade Microsoft, Bitcoin advocate and MicroStrategy Chairman Michael Saylor highlighted Bitcoin’s impressive returns and boasted about the rise in MicroStrategy’s stock following their BTC investments. His argument? That Bitcoin could enhance Microsoft’s market value while serving as a financial safeguard.

Microsoft’s reply? No, thank you.

Conversely, at least ten other companies are adopting the MicroStrategy approach.

Genius Group

Genius Group, an AI-driven education firm, announced in November that it had finalized the acquisition of 110 Bitcoin for $10 million, at an average price of $90,932 each. This purchase fulfilled a commitment to a “Bitcoin-first” approach, aiming to hold 90% or more of its current and future reserves in Bitcoin, with an initial objective of $120 million.

Earlier this month, the company enhanced its Bitcoin holdings by adding 194 Bitcoin, valued at $18 million, at an average cost of $92,728 each.

CEO Roger Hamilton credited Saylor’s Bitcoin treasury concept as inspirational, stating that “more companies will recognize the advantages of establishing a Bitcoin treasury, equipped with clear guidelines to follow.”

Worksport

Worksport, a U.S. provider of pickup truck solutions, is incorporating cryptocurrency into its corporate treasury strategy.

The Nasdaq-listed company announced on Dec. 5 its plans to add Bitcoin (BTC) and XRP (XRP) to its treasury assets, following a board resolution approving an initial purchase of $5 million worth of BTC and XRP.

Worksport is dedicating 10% of its excess operational cash to this corporate initiative, according to the announcement.

“Our upcoming adoption of Bitcoin (BTC) and XRP (Ripple) demonstrates our dedication to staying ahead of market trends while prioritizing operational efficiency and shareholder value. As we broaden our product range and global presence, cryptocurrency can serve as a significant strategic asset,” stated Steven Rossi, chief executive officer of Worksport.

Amazon

Amazon shareholders, spearheaded by the National Center for Public Policy Research, are urging the Seattle-based company’s board to evaluate the potential perks of incorporating Bitcoin into its financial strategy.

The proposal, submitted on Dec. 6, seeks to assess whether Bitcoin might protect and enhance shareholder value, particularly amidst ongoing inflation and decreasing returns from traditional assets.

The National Center points to Bitcoin’s solid performance—131% growth over the past year and 1,246% over five years—as proof of its potential as an inflation hedge and growth asset. The initiative also underscores concerns regarding the declining purchasing power of Amazon’s $88 billion cash reserves, impacted by an average inflation of 4.95% over the last four years.

This movement illustrates a broader trend of shareholder proposals shaping corporate strategies, utilizing shareholder rights to advocate for fiscal approaches that mitigate economic risks and bolster long-term value.

MicroStrategy

MicroStrategy’s Saylor may be the most outspoken Bitcoin enthusiast, as of this week, increasing the firm’s total holdings to 439,000 BTC.

This move solidifies Saylor’s role as the top corporate Bitcoin holder, viewing it as a long-term store of value.

During a guest appearance on the Dec. 18 episode of the Open Interest show on Bloomberg Television, he expressed a willingness to advise President-elect Donald Trump on creating a digital asset policy for the United States.

However, Saylor faces critique: Analyst Jacob King has disparaged MicroStrategy’s Bitcoin-centric model as a “giant scam,” asserting it is unsustainable and destined to fail.

Marathon Digital Holdings

As a leading Bitcoin mining company, Marathon possesses 44,394 BTC, with its operational strategy focusing on mining and retaining Bitcoin as assets.

In July, the company confirmed it would embrace “a full HODL approach” for its Bitcoin treasury, opting to retain everything it mines, in addition to purchases from the open market.

“Embracing a full HODL strategy exemplifies our confidence in Bitcoin’s long-term value,” stated CEO Fred Thiel. “We see Bitcoin as the premier treasury reserve asset and advocate for sovereign wealth funds to hold it. We encourage both governments and corporations to treat Bitcoin as a reserve asset.”

Tesla

Tesla made an initial investment of $1.5 billion in Bitcoin in 2021 and currently holds 9,720 BTC, maintaining its stature as a significant corporate Bitcoin holder.

According to BitcoinTreasuries data, Tesla ranks as the fourth-largest Bitcoin holder among U.S. public companies with crypto treasuries (following MicroStrategy, MARA Holdings, and Riot Platforms).

In October, the electric vehicle manufacturer reportedly transferred $765 million worth of Bitcoin to unmarked wallets.

Coinbase

The cryptocurrency exchange holds 9,480 BTC as part of its reserves, capitalizing on its prominent role within the digital asset ecosystem.

Under the leadership of Brian Armstrong, the firm retains substantial Bitcoin as both an exchange and converter. Additionally, it provides custody services and boasts a clientele that includes notable Bitcoin ETFs such as BlackRock, Grayscale, 21Shares, Invesco, Valkyrie, Wisdom Tree, and Franklin Templeton.

Thus, Coinbase maintains a Bitcoin treasury for itself while overseeing the assets of others.

Hut 8 Mining Corp

Recently, crypto.news reported that Hut 8, a Bitcoin mining enterprise, added 990 Bitcoin to its reserves.

The company invested around $100 million to raise its total holdings to 10,096 BTC. Valued at over $1 billion, this reserve positions Hut 8 among the largest corporate Bitcoin holders globally.

Under CEO Asher Genoot’s direction, the company acquired the coins at an average price of $101,710, significantly exceeding its cumulative cost of acquiring Bitcoin at $24,484 per unit.

Block Inc.

The startup, formerly known as Square, retains 8,027 BTC as part of its strategy to embed Bitcoin into mainstream finance.

Founded by Jack Dorsey, Block is so optimistic about Bitcoin that, just last month, it confirmed a shift in company-wide operations towards the cryptocurrency mining sector.

Block decided to scale back its investments in the music streaming service TIDAL and wind down TBD, an initiative aimed at decentralizing the internet, to refocus on enhancing its footprint in the Bitcoin mining industry.

Block acquired TIDAL in 2021 for approximately $300 million, a platform that continues to face challenges, including reports of workforce layoffs and a $132.3 million impairment charge.

OneMedNet

As of Nov. 12, OneMedNet Corp. holds approximately 34 Bitcoins.

Off The Chain Capital, an investor in OneMedNet, has also been inspired by Saylor, viewing Bitcoin not merely as a hedge but as a catalyst for healthcare data advancement.

CEO Aaron Green noted, “By continuously allocating a portion of our assets to Bitcoin, we aim to safeguard our financial health while also fueling ongoing development and innovation within our iRWD platform.”