While Microsoft shareholders rejected the idea of a Bitcoin treasury, several other prominent firms are taking a different approach. Here’s the reasoning behind it.
Bitcoin (BTC) is often referred to as “digital gold,” due to its capped supply of 21 million coins, which positions it as a possible safeguard against inflation and currency devaluation.
Today, Bitcoin’s distinctive features make it an appealing addition to corporate treasury strategies. It provides a counterbalance to traditional assets like cash, stocks, and bonds.
Bitcoin also ranks among the most liquid assets in the world, with a historical trajectory indicating significant long-term value growth—most notably hitting an all-time high of over $108,000 on Dec. 17.
However, the risks are considerable.
A board may steer clear of establishing a Bitcoin treasury due to the coin’s notorious price volatility that can result in substantial losses during market downturns. Additionally, regulatory uncertainty could create risks as governments continue to refine their crypto regulations. Furthermore, liquidity issues during market declines may exacerbate price drops when attempting to sell assets.
For these reasons, it’s not surprising that Microsoft’s board opted on Dec. 10 to align with the long-standing skepticism about cryptocurrencies expressed by co-founder Bill Gates, rejecting the Bitcoin treasury proposal. Gates has famously labeled crypto as “100% based on greater fool theory” — quite a critique.
Bitcoin advocate and MicroStrategy Chairman Michael Saylor attempted to persuade Microsoft by highlighting Bitcoin’s impressive returns and boasting about MicroStrategy’s stock performance post-BTC investment. His argument was that Bitcoin could enhance Microsoft’s market capitalization and serve as a financial safeguard.
Microsoft’s reply? No, thank you.
In stark contrast, at least 10 other companies are following MicroStrategy’s example.
Genius Group
Genius Group, an AI-driven education firm, declared in November that it had secured 110 Bitcoin for $10 million, averaging $90,932 each. This move aligns with their “Bitcoin-first” strategy, targeting to hold 90% or more of their current and future reserves in Bitcoin, with an initial goal of $120 million.
Earlier this month, the company expanded its Bitcoin treasury by acquiring an additional 194 Bitcoin worth $18 million at an average price of $92,728 each.
Genius Group CEO Roger Hamilton credited Saylor’s Bitcoin treasury concept as a motivating factor, stating that “more companies will recognize the advantages of establishing a Bitcoin treasury and will have clear steps to follow.”
Worksport
Worksport, a U.S.-based provider of pickup truck solutions, is integrating cryptocurrency into its treasury strategy.
The Nasdaq-listed company announced on Dec. 5 that it would incorporate Bitcoin (BTC) and XRP (XRP) into its treasury assets, following a board resolution that approved a preliminary purchase of $5 million in BTC and XRP.
Worksport pledged 10% of its surplus operational cash to this corporate shift, as detailed in their announcement.
“Our forthcoming adoption of Bitcoin (BTC) and XRP (Ripple) highlights our commitment to staying ahead of market trends while emphasizing operational efficiency and shareholder value. As we broaden our product offerings and global reach, cryptocurrency has the potential to serve as a strategic asset,” said Steven Rossi, CEO of Worksport.
Amazon
Amazon shareholders, spearheaded by the National Center for Public Policy Research, are urging the Seattle-based firm’s board to evaluate the merits of adding Bitcoin to the company’s financial framework.
The proposal, filed on Dec. 6, seeks to investigate whether Bitcoin could safeguard and boost shareholder value, particularly in light of ongoing inflation and dwindling yields from conventional assets.
The National Center touts Bitcoin’s strong performance—131% growth in the last year and 1,246% over the previous five years—as evidence of its potential as an inflation shield and growth asset. The initiative also raises alarms about the erosion of purchasing power concerning Amazon’s $88 billion cash reserves, given an average inflation rate of 4.95% over the last four years.
This action reflects a broader pattern of shareholder proposals affecting corporate policies, utilizing shareholder rights to advocate for financial strategies that mitigate economic risks and bolster long-term value.
MicroStrategy
MicroStrategy’s Saylor is perhaps the most outspoken Bitcoin proponent, and as of this week, has increased the company’s total Bitcoin holdings to 439,000.
This development reinforces MicroStrategy’s position as the largest corporate BTC holder, which Saylor views as a long-term value store.
Yet, Saylor faces criticism: Analyst Jacob King has described MicroStrategy’s Bitcoin-centric business model as a “giant scam,” claiming it is unsustainable and fated to fail.
Marathon Digital Holdings
As one of the leading Bitcoin mining firms, Marathon possesses 44,394 BTC. Its business model is fundamentally based on mining and retaining Bitcoin as part of its assets.
In July, the company confirmed its decision to adopt “a full HODL approach” regarding its Bitcoin treasury strategy, holding onto everything it mines along with open market acquisitions.
“Adopting a full HODL strategy reflects our confidence in the long-term value of Bitcoin,” stated CEO Fred Thiel. “We consider Bitcoin the best treasury reserve asset and support the notion that sovereign wealth funds should hold it. We advocate for both governments and corporations to retain Bitcoin as a reserve asset.”
Tesla
Tesla initially invested $1.5 billion in Bitcoin in 2021, currently holding 9,720 BTC. The Elon Musk-led company remains a notable corporate holder.
BitcoinTreasuries data indicates 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 undisclosed wallets.
Coinbase
The cryptocurrency exchange holds 9,480 BTC within its reserves, using its role as a major player in the digital asset space.
Led by Brian Armstrong, the firm holds substantial amounts of Bitcoin as both an exchange and converter. Additionally, it is a reputable institution for custody services, with clients including the Bitcoin ETF ensemble of BlackRock, Grayscale, 21Shares, Invesco, Valkyrie, WisdomTree, and Franklin Templeton.
Thus, Coinbase maintains a Bitcoin treasury for itself and manages treasuries for others as well.
Hut 8 Mining Corp
On Thursday, crypto.news reported that Hut 8, a Bitcoin mining firm, added 990 Bitcoin to its reserves.
The company invested approximately $100 million to increase its total holdings to 10,096 BTC. This reserve, now worth over $1 billion, ranks Hut 8 among the foremost corporate Bitcoin holders globally.
Under the leadership of CEO Asher Genoot, the company purchased the Bitcoin at an average price of $101,710, significantly higher than its cumulative acquisition cost of $24,484 per Bitcoin.
Block Inc.
Now known as Block (formerly Square), the startup holds 8,027 BTC as part of its strategy to merge Bitcoin into mainstream finance.
The company founded by Jack Dorsey is so optimistic about Bitcoin that it recently announced a company-wide shift toward the cryptocurrency mining sector.
Block decided to scale back its resources dedicated to the music streaming service TIDAL and to sunset TBD, a project aimed at decentralizing the internet, to focus on bolstering its presence in the Bitcoin mining arena.
Block acquired TIDAL in 2021 for around $300 million. However, the platform has faced challenges, with reports highlighting workforce reductions and a $132.3 million impairment charge.
OneMedNet
As of Nov. 12, OneMedNet Corp. possesses around 34 Bitcoin.
Off The Chain Capital, an investor in OneMedNet, took inspiration from Saylor, believing that Bitcoin is not merely a hedge but a vital component for driving innovation in healthcare data.
CEO Aaron Green stated, “By continuously allocating a portion of our assets into Bitcoin, we aim to not only preserve our financial stability but also to power the ongoing development and innovation within our iRWD platform.”
