10 Companies Launch Bitcoin Treasuries, But Not Microsoft: Risks and Benefits Explained

In recent years, Bitcoin has gained traction as a potential addition to corporate treasuries, touted as a “digital gold” with the ability to hedge against inflation and currency devaluation. As Bitcoin’s price continues to soar, it’s become an attractive asset for companies looking to diversify their financial strategies. However, while some large corporations like Microsoft have resisted the idea, others have embraced Bitcoin as a key element of their treasury policies.

The Benefits of Bitcoin in Corporate Treasuries

• Hedge Against Inflation: Bitcoin’s fixed supply of 21 million coins positions it as a potential hedge against inflation, especially as fiat currencies lose value over time. For companies, holding Bitcoin could offset the diminishing purchasing power of their cash reserves.
• Diversification of Assets: Adding Bitcoin to a corporate treasury offers diversification, balancing traditional assets such as cash, bonds, and stocks. Bitcoin’s decentralized nature and global liquidity make it an attractive choice compared to more traditional forms of wealth storage.
• Potential for Long-Term Appreciation: Historically, Bitcoin has shown significant value appreciation. With its price reaching an all-time high of over $108,000 in December 2024, its potential for growth is appealing to corporate treasuries looking for long-term returns.
• Liquidity: Bitcoin is one of the most liquid assets in the world, which means that companies can buy and sell large amounts of Bitcoin quickly if needed, without impacting the market significantly.

The Risks Involved

• Volatility: Bitcoin’s price is notoriously volatile, making it a risky asset for companies. In periods of market downturns, the price of Bitcoin can drop significantly, which could result in substantial losses if a company holds a large position.
• Regulatory Uncertainty: Governments around the world are still refining their policies on cryptocurrencies, and sudden regulatory changes could impact Bitcoin’s value or its accessibility. Companies could face risks related to compliance and shifting tax policies.
• Liquidity Challenges: While Bitcoin is highly liquid, large sales during market slumps can worsen price declines. Companies may find it difficult to offload large amounts of Bitcoin without negatively affecting its market price, especially during periods of low demand.

Microsoft’s Resistance to a Bitcoin Treasury

Despite Bitcoin’s growing popularity among corporations, Microsoft’s board recently rejected a proposal to establish a Bitcoin treasury, influenced by the long-standing skepticism of co-founder Bill Gates. Gates has been a vocal critic of Bitcoin, calling it a “100% based on greater fool theory.” This rejection highlights the concern about Bitcoin’s volatility and the potential risks it poses for a large, established company like Microsoft.

Bitcoin evangelist Michael Saylor, the chairman of MicroStrategy, tried to convince Microsoft of the potential benefits of holding Bitcoin by pointing to his own company’s success. MicroStrategy’s Bitcoin treasury has grown significantly over the years, with the company holding over 439,000 Bitcoin as of December 2024. Saylor’s pitch is simple: Bitcoin could boost Microsoft’s market cap and act as a financial safeguard in times of economic uncertainty. However, Microsoft’s board remained unconvinced.

Companies Embracing Bitcoin Treasuries

While Microsoft has rejected the idea, at least 10 other companies have embraced Bitcoin as part of their financial strategy:

1. Genius Group: This AI-powered education company has implemented a “Bitcoin-first” strategy, committing 90% or more of its reserves to Bitcoin. In November 2024, it purchased 110 Bitcoin for $10 million, and later acquired 194 more BTC for $18 million.
2. Worksport: A U.S.-based provider of truck accessories, Worksport announced in December that it would add Bitcoin and XRP to its treasury, committing 10% of its excess operational cash to this strategy.
3. Amazon: Shareholders are urging Amazon’s board to assess Bitcoin’s potential benefits, particularly as a hedge against inflation and a growth asset. A proposal submitted in December 2024 suggests Bitcoin could protect Amazon’s $88 billion cash reserves.
4. MicroStrategy: As the largest corporate holder of Bitcoin, MicroStrategy, under Saylor’s leadership, continues to expand its Bitcoin treasury. The company has accumulated over 439,000 Bitcoin, making it the top corporate Bitcoin holder globally.
5. Marathon Digital Holdings: One of the largest Bitcoin mining companies, Marathon owns over 44,000 Bitcoin and retains all the BTC it mines. The company’s CEO has expressed strong confidence in Bitcoin’s long-term value.
6. Tesla: Tesla’s $1.5 billion Bitcoin purchase in 2021 made headlines, and the company continues to hold a significant Bitcoin treasury. It has also moved substantial amounts of Bitcoin between wallets, raising questions about its strategy.
7. Coinbase: As a major cryptocurrency exchange, Coinbase holds over 9,400 Bitcoin in its reserves. The company’s role as a custodian for other institutional investors bolsters its position in the crypto ecosystem.
8. Hut 8 Mining Corp: This Bitcoin mining company recently added 990 Bitcoin to its reserves, taking its total holdings to over 10,000 BTC, making it one of the largest corporate Bitcoin holders globally.
9. Block (formerly Square): Led by Jack Dorsey, Block has embraced Bitcoin by holding 8,027 BTC in its reserves and shifting its focus towards Bitcoin mining.
10. OneMedNet: A healthcare data company, OneMedNet holds 34 Bitcoin as part of its financial strategy, inspired by the success of Bitcoin treasury policies like those championed by MicroStrategy.

The debate over Bitcoin treasuries is far from over. While some companies, like Microsoft, remain hesitant due to the volatility and regulatory uncertainties surrounding Bitcoin, others see it as a strategic asset that could offer long-term benefits. Bitcoin’s potential for diversification, protection against inflation, and liquidity makes it an attractive option for companies looking to secure their financial future in an increasingly uncertain economic environment. However, its risks, including price volatility and regulatory ambiguity, cannot be ignored. As more companies like MicroStrategy and Amazon explore Bitcoin, the conversation around its role in corporate treasuries will continue to evolve.