DailySun
Microsoft shareholders rejected a proposal to create a Bitcoin treasury, yet several prominent companies are in favor of this move. Here’s an overview of their reasoning.
Bitcoin (BTC) is often referred to as “digital gold,” due to its capped supply of 21 million coins, making it a viable hedge against currency depreciation and inflation.
Currently, Bitcoin’s distinctive features render it a compelling option for corporate treasuries. It can diversify exposure to conventional assets such as cash, stocks, and bonds.
Moreover, Bitcoin is one of the most liquid assets worldwide, and its historical performance indicates considerable long-term value growth, having peaked at over $108,000 on December 17.
However, there are notable risks involved.
A corporate board may hesitate to adopt a Bitcoin treasury due to the cryptocurrency’s extreme price volatility, which can result in significant losses during downturns. Furthermore, regulatory ambiguities present potential challenges as governments refine their cryptocurrency policies. Additionally, liquidity issues during market declines can exacerbate price drops when liquidating assets.
This skepticism culminated on December 10, when Microsoft’s board echoed the long-standing crypto skepticism of co-founder Bill Gates, who recommended against pursuing a Bitcoin treasury. Gates has notably dismissed cryptocurrencies as “100% based on greater fool theory” — a tough critique.
In contrast, Bitcoin advocate and MicroStrategy Chairman, Michael Saylor, attempted to persuade Microsoft by highlighting Bitcoin’s remarkable returns and boasting about MicroStrategy’s share value climbing after their BTC investments. His argument? Bitcoin could enhance Microsoft’s market valuation while also acting as a financial safety net.
Microsoft’s decision? No, thank you.
Meanwhile, at least 10 other companies are following MicroStrategy’s playbook.
Genius Group
Genius Group, an AI-driven education firm, announced in November the completion of its acquisition of 110 Bitcoin for $10 million, averaging $90,932 per Bitcoin. This acquisition aligns with their promised “Bitcoin-first” strategy, intending to allocate 90% or more of their current and future reserves into Bitcoin, with an initial goal of $120 million.
Earlier this month, the company expanded its Bitcoin treasury by snapping up 194 Bitcoin valued at $18 million, averaging $92,728 per Bitcoin.
Genius Group CEO Roger Hamilton credited Saylor’s Bitcoin treasury approach as a source of inspiration, asserting that “more companies will recognize the advantages of establishing a Bitcoin treasury and will have clearer guidelines to follow.”
Worksport
Worksport, a provider of pickup truck solutions based in the U.S., is integrating cryptocurrency into its corporate treasury strategy.
The Nasdaq-listed company declared on December 5 its decision to include Bitcoin (BTC) and XRP (XRP) in its treasury assets, following a resolution from the company’s board to initiate a purchase of $5 million worth of BTC and XRP.
Worksport plans to allocate 10% of its surplus operational funds towards this corporate shift, as indicated in their announcement.
“Our upcoming adoption of Bitcoin (BTC) and XRP (Ripple) showcases our dedication to staying ahead of market trends while emphasizing operational efficiency and shareholder value. As we broaden our product range and global presence, cryptocurrency could be a significant strategic asset,” stated Steven Rossi, CEO of Worksport.
Amazon
Amazon shareholders, spearheaded by the National Center for Public Policy Research, are urging the company’s board in Seattle to explore the potential benefits of incorporating Bitcoin into its financial strategy.
The proposal, submitted on December 6, seeks to investigate whether Bitcoin could safeguard and enhance shareholder value, particularly in light of ongoing inflation and declining returns from traditional assets.
The National Center underscores Bitcoin’s impressive performance—showing 131% growth over the past year and 1,246% over five years—as evidence of its potential to act as an inflation hedge and a growth asset. The initiative also points out concerns surrounding the diminishing purchasing power of Amazon’s $88 billion cash reserves, considering an average inflation rate of 4.95% over the preceding four years.
This initiative reflects a wider trend of shareholders influencing corporate policies, utilizing their rights to advocate for financial strategies that mitigate economic risks and promote long-term value.
MicroStrategy
Perhaps the most prominent advocate for Bitcoin is MicroStrategy’s Saylor, who, as of this past week, increased the company’s total holdings to 439,000.
Consequently, Saylor has formally solidified MicroStrategy’s position as the leading corporate holder of BTC, viewing it as a long-term store of value.
During an appearance on the December 18 episode of the Open Interest show on Bloomberg Television, he even expressed his willingness to advise President-elect Donald Trump in formulating a digital asset policy for the U.S.
Yet, Saylor faces criticism: Analyst Jacob King has categorized MicroStrategy’s Bitcoin-centric business model as a “giant scam,” asserting it is not sustainable and bound for failure.
Marathon Digital Holdings
As one of the largest Bitcoin mining firms, Marathon possesses 44,394 BTC. Its business model is entirely centered on mining and holding Bitcoin as part of its asset portfolio.
In July, the company confirmed its intention to adopt “a full HODL approach” toward its Bitcoin treasury policy, retaining all mined Bitcoin in its operations, in addition to its market purchases.
“Implementing a full HODL strategy demonstrates our belief in the long-term value of Bitcoin,” stated CEO Fred Thiel. “We consider Bitcoin to be the world’s premier treasury reserve asset and support the idea of sovereign wealth funds holding it. We advocate for governments and corporations to all maintain Bitcoin as a reserve asset.”
Tesla
Tesla made its initial purchase of $1.5 billion in Bitcoin in 2021 and currently holds 9,720 BTC. The Elon Musk-led company remains a major corporate holder.
According to BitcoinTreasuries data, Tesla ranks as the fourth-largest holder of Bitcoin among U.S. public companies maintaining crypto treasuries (with MicroStrategy, MARA Holdings, and Riot Platforms believed to hold more).
In October, the electric vehicle company reportedly transferred $765 million worth of Bitcoin to unidentified wallets.
Coinbase
The cryptocurrency exchange holds 9,480 BTC as part of its reserves, utilizing its status as a key player in the digital asset landscape.
Led by Brian Armstrong, the firm retains large amounts of Bitcoin as an exchange and converter. It also serves as a trusted institution for custody services, with prominent Bitcoin ETF clients including BlackRock, Grayscale, 21Shares, Invesco, Valkyrie, Wisdom Tree, and Franklin Templeton.
As a result, Coinbase maintains a Bitcoin treasury for itself while overseeing others.
Hut 8 Mining Corp
According to a report from crypto.news on Thursday, Hut 8, a Bitcoin mining company, has added 990 Bitcoin to its reserves.
The company invested around $100 million to raise 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.
Under CEO Asher Genoot’s leadership, the company acquired the coins at an average price of $101,710, which is significantly higher than its cumulative acquisition cost of $24,484 per Bitcoin.
Block Inc.
The startup, formerly known as Square, holds 8,027 BTC as part of its strategy to incorporate Bitcoin into mainstream finance.
Founded by Jack Dorsey, the company is so optimistic about Bitcoin that, last month, it announced a company-wide shift towards the cryptocurrency mining sector.
Block decided to shift resources away from its music streaming service TIDAL and wind down TBD, a venture focused on decentralizing the internet, to enhance its presence in the Bitcoin mining industry.
Block acquired TIDAL in 2021 for about $300 million, but the platform has faced challenges, evidenced by workforce reductions and a $132.3 million impairment charge.
OneMedNet
As of November 12, OneMedNet Corp. owns approximately 34 Bitcoins.
Off The Chain Capital, an investor in OneMedNet, was also influenced by Saylor, betting that Bitcoin serves not just as a hedge but also as a catalyst for innovation in healthcare data.
Aaron Green, the company’s CEO, remarked, “By continually investing a portion of our assets into Bitcoin, we aim to preserve our financial stability while driving ongoing development and innovation within our iRWD platform.”
