Microsoft shareholders rejected a Bitcoin treasury initiative, but several major companies are opting to take a different path. Here’s an analysis of the emerging trend.
Bitcoin (BTC) is often referred to as “digital gold,” with its capped supply of 21 million coins presenting a potential safeguard against inflation and currency devaluation.
Given its unique properties, Bitcoin is increasingly seen as an appealing addition to corporate treasuries. It can offer diversification against traditional financial assets such as cash, stocks, and bonds.
With its high liquidity and historical trend of substantial long-term appreciation—climbing to an all-time high exceeding $108,000 in December—Bitcoin stands out in the financial landscape.
However, significant risks remain. Boards may hesitate regarding a Bitcoin treasury due to the cryptocurrency’s notorious volatility, which can lead to considerable losses during market downturns. Regulatory uncertainties also present challenges as governments refine crypto policies, and liquidity concerns can exacerbate price drops during market slumps.
Reflecting this caution, Microsoft’s board recently decided against a Bitcoin treasury proposal, echoing the long-standing skepticism of its co-founder.
In contrast, over ten other companies are adopting strategies similar to MicroStrategy’s approach to Bitcoin.
Genius Group
Genius Group, an AI-driven education firm, revealed in November that it purchased 110 Bitcoin for $10 million, averaging $90,932 each. This move aligns with its commitment to a “Bitcoin-first” strategy, aiming to allocate a minimum of 90% of its reserves into Bitcoin, targeting $120 million.
The company also recently increased its Bitcoin treasury by acquiring 194 BTC for $18 million, at an average price of $92,728.
CEO Roger Hamilton praised the inspiration drawn from Bitcoin’s treasury model, suggesting many firms will begin to recognize the merits of Bitcoin as a treasury asset.
Worksport
Worksport, a provider of pickup truck solutions in the U.S., is incorporating cryptocurrency into its treasury strategy.
On December 5, the publicly traded company announced plans to purchase $5 million worth of Bitcoin (BTC) and XRP, dedicating 10% of its excess operational cash to this new focus.
“Our strategy to adopt Bitcoin and XRP reflects our commitment to market trends and operational efficiency,” stated CEO Steven Rossi.
Amazon
Shareholders at Amazon, guided by the National Center for Public Policy Research, are urging the company to evaluate the potential advantages of integrating Bitcoin into its financial framework.
The proposal aims to determine if Bitcoin can enhance shareholder value, particularly during continued inflation and dwindling returns from traditional investments.
Highlighting Bitcoin’s impressive growth—131% in the last year and 1,246% over five years—the proposal underscores concerns over the diminishing purchasing power of Amazon’s cash reserves amid rising inflation rates.
MicroStrategy
MicroStrategy remains a prominent advocate for Bitcoin, recently announcing an increase in holdings to 439,000 BTC, reinforcing its status as the largest corporate Bitcoin holder.
Despite facing scrutiny, the company continues to promote Bitcoin as a long-term store of value, with its CEO publicly discussing digital asset policy issues.
Marathon Digital Holdings
As a leading Bitcoin mining entity, Marathon Digital holds 44,394 BTC, emphasizing a strategy centered around retaining what it mines as part of its asset portfolio.
CEO Fred Thiel expressed confidence in Bitcoin’s value as a treasury asset, advocating for its use by corporations and governments alike.
Tesla
Tesla is another significant player in the Bitcoin space, having initially acquired $1.5 billion worth of Bitcoin in 2021, currently holding around 9,720 BTC.
Coinbase
The cryptocurrency exchange Coinbase holds 9,480 BTC in its reserves, affirming its position within the crypto ecosystem by providing custody services and facilitating transactions.
Hut 8 Mining Corp
Recent reports indicated that Hut 8 expanded its Bitcoin reserves by acquiring 990 BTC, spending approximately $100 million and reaching a total of 10,096 BTC valued at over $1 billion.
Block Inc.
Block, previously known as Square, is actively integrating Bitcoin into its business model and recently pivoted to focus on the cryptocurrency mining sector.
OneMedNet
OneMedNet Corp. has begun to explore Bitcoin as a hedge and a means to drive innovation, holding 34 BTC as of November.
