Microsoft shareholders rejected the idea of a Bitcoin Treasury, but other major companies do not agree with this strategy. Here’s why:
Bitcoin (BTC) is often likened to “digital gold” and has a 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 finances. You can balance your exposure to traditional assets such as cash, stocks, and bonds.
Bitcoin is also one of the world’s most liquid assets, and its historical performance has shown significant long-term increases in value, reaching an all-time high of over $108,000 on December 17th. Reached.
But it’s not without risks.
Due to the high volatility of Bitcoin’s price, the board may avoid adopting a Bitcoin Treasury, which could result in large losses during a recession. Additionally, regulatory uncertainty poses a potential threat as governments refine their cryptocurrency policies. Additionally, liquidity challenges during market downturns can magnify price declines when assets are offloaded.
It’s no wonder, then, that on December 10, Microsoft’s board of directors recommended that co-founder Bill Gates’ long-standing skepticism about cryptocurrencies be dismissed, and that the Bitcoin Treasury proposal be withdrawn. Gates himself famously denied that cryptocurrencies are “100% based on the theory of a big fool.”
Bitcoin evangelist and MicroStrategy chairman Michael Saylor has been busy wooing Microsoft, touting Bitcoin’s own incredible returns and boasting that MicroStrategy’s stock price has skyrocketed after the BTC splurge. . What’s his pitch? Bitcoin could boost Microsoft’s market cap while acting as a financial guardian angel.
What is Microsoft’s response? no thanks.
Meanwhile, at least 10 other companies have adopted the MicroStrategy Handbook.
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 acquisition comes as the company plans to hold more than 90% of its current and future reserves in Bitcoin, with an initial target of $120 million in Bitcoin and a commitment to adopt a strategy called It was done based on.
Earlier this month, the company strengthened its Bitcoin holdings by acquiring 194 Bitcoins worth $18 million at an average price of $92,728 per Bitcoin.
Roger Hamilton, CEO of Genius Group, acknowledged Saylor’s Bitcoin Treasury plan as a source of inspiration, saying, “More companies will want to realize the benefits of establishing a Bitcoin Treasury. There will be clear procedures to be aware of and follow,” he added.
work sports
Workport, a US-based pick-up truck solutions provider, is adding cryptocurrencies to its corporate finance strategy.
On December 5th, the Nasdaq-listed company announced that it would add Bitcoin (BTC) and XRP (XRP) to its assets. This follows a resolution by the company’s board of directors that approved the initial purchase of $5 million worth of BTC and XRP.
Work Sports stated in the announcement that it would allocate 10% of its surplus operating cash to this core business.
“The upcoming adoption of Bitcoin (BTC) and XRP (Ripple) reflects our commitment to staying ahead of market trends while prioritizing operational efficiency and shareholder value. Cryptocurrencies have the potential to become a powerful strategic complement as we expand our global footprint,” said Stephen Rossi, CEO of WorkSport.
Amazon
Amazon shareholders, led by the National Center for Public Policy Research, are asking the Seattle-based company’s board to evaluate the potential benefits of adding bitcoin to the company’s financial strategy.
The proposal, filed on December 6, aims to consider whether Bitcoin can protect and enhance shareholder value, especially amid persistent inflation and declining yields on traditional assets. There is.
The National Center highlights Bitcoin’s strong performance (growth of 131% over the past year and 1,246% over five years) as evidence of its potential as an inflation hedge and growth asset. The effort 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.
The move represents a broader trend for shareholder proposals to influence corporate policy, leveraging shareholder rights to advocate for financial strategies that address economic risks and increase long-term value.
micro strategy
Perhaps the most vocal of all Bitcoin fans is MicroStrategy’s Saylor, who increased his company’s total holdings to 439,000 coins as of last week.
As a result, Saylor officially strengthens MicroStrategy’s position as a top corporate BTC holder, believing it to be a long-term store of value.
Saylor appeared on the Dec. 18 episode of Bloomberg TV’s Open Interest show and even said he would be open to advising President-elect Donald Trump on developing U.S. digital asset policy.
However, Saylor continues to attract intense scrutiny. Analyst Jacob King labeled MicroStrategy’s Bitcoin-centric business model a “colossal fraud” and claimed it was unsustainable and doomed to collapse.
Marathon Digital Holdings
As one of the largest Bitcoin mining companies, Marathon owns 44,394 BTC. Its business model revolves entirely around mining Bitcoin and holding it as part of its assets.
In July, the company confirmed that in addition to open market purchases, it would take a “full HODL approach” to Bitcoin financial policy and keep all mined assets within its own operations. .
“The adoption of 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 reserve asset and support the idea of sovereign wealth funds holding Bitcoin. We encourage you to hold your coins.”
tesla
Tesla initially purchased $1.5 billion worth of Bitcoin in 2021 and currently holds 9,720 BTC. While Elon Musk’s company remains a significant corporate holder.
According to data from BitcoinTreasuries, Tesla holds the fourth-most Bitcoin among U.S. public companies with crypto treasury holdings (MicroStrategy, MARA Holdings, and Riot Platforms have even more holders). considered).
In October, the electric car company reportedly moved $765 million worth of Bitcoin to an unidentified wallet.
coinbase
Leveraging its position as a major player in the digital asset ecosystem, the cryptocurrency exchange holds 9,480 BTC as part of its reserves.
The company, led by Brian Armstrong, holds large amounts of Bitcoin as an exchange and converter. It is also a trusted authority for custody services, with clients including Bitcoin ETF peers BlackRock, Grayscale, 21Shares, Invesco, Valkyrie, WisdomTree, and Franklin Templeton.
Therefore, Coinbase has its own Bitcoin vault and oversees other vaults.
Hut 8 Mining Corporation
On Thursday, crypto.news reported that Bitcoin mining company Hut 8 added 990 Bitcoins to its reserves.
The company spent about $100 million to increase its total holdings to 10,096 BTC. This reserve is currently valued at more than $1 billion, making Hut8 one of the world’s largest corporate Bitcoin holders.
The company, under the leadership of CEO Asher Genuto, purchased the coins at an average price of $101,710, significantly higher than the cumulative acquisition cost of $24,484 per Bitcoin.
Block Co., Ltd.
The startup (formerly Square) holds 8,027 BTC as part of its strategy to integrate Bitcoin into mainstream finance.
The company, founded by Jack Dorsey, is extremely bullish on Bitcoin, confirming last month that it would be making a company-wide move into crypto mining.
Block will focus resources on music streaming service TIDAL and Sunset TBD, a venture company focused on internet decentralization, and will focus on expanding its presence in the Bitcoin mining space. I decided.
Block acquired TIDAL in 2021 for approximately $300 million. The platform continues to struggle, with reports saying it has cut staff and incurred $132.3 million in impairment charges.
one med net
OneMedNet Corp. owns approximately 34 Bitcoins as of November 12th.
Off The Chain Capital, an investor in OneMedNet, is also inspired by Saylor and is betting that Bitcoin will become more than just a hedge, but a springboard to healthcare data innovation.
“By continuing to invest a portion of our assets in Bitcoin, we are not only protecting our financial stability, but also fostering the ongoing development and innovation within the iRWD platform,” said Aaron Green, CEO of the company. That’s what I’m aiming for.”
