In recent times, the idea of adding Bitcoin to corporate treasuries has been gaining traction among companies looking to diversify their assets and hedge against inflation. Bitcoin’s limited supply of 21 million coins and its historical value appreciation have made it an attractive option for companies looking to balance exposure to traditional assets like cash, stocks, and bonds. However, there are risks associated with adopting a Bitcoin treasury, including extreme price volatility, regulatory uncertainties, and liquidity challenges during market downturns.
One such company that recently rejected the idea of a Bitcoin treasury is Microsoft, with its board citing concerns about the coin’s price volatility and regulatory uncertainties. Microsoft’s co-founder, Bill Gates, has been a vocal critic of cryptocurrencies, dismissing them as being based on the “greater fool theory.” Despite Microsoft’s reluctance, other big-name companies have embraced the idea of adding Bitcoin to their corporate treasuries.
Genius Group, an AI-powered education group, announced its commitment to holding 90% or more of its current and future reserves in Bitcoin, with an initial target of $120 million. Worksport, a provider of pickup truck solutions, added Bitcoin and XRP to its treasury assets, committing 10% of its excess cash to the cryptocurrencies. Amazon shareholders have urged the company to explore the benefits of adding Bitcoin to its financial strategy as a hedge against inflation and declining yields from traditional assets.
MicroStrategy, led by Bitcoin evangelist Michael Saylor, has been one of the most vocal proponents of adding Bitcoin to corporate treasuries. The company currently holds 439,000 BTC and views Bitcoin as a long-term store of value. Marathon Digital Holdings, a Bitcoin mining company, has adopted a full HODL strategy with its Bitcoin treasury policy, retaining all mined Bitcoin within its operations.
Tesla, Coinbase, Hut 8 Mining Corp, Block Inc. (formerly Square), and OneMedNet are among the companies that have added Bitcoin to their corporate treasuries or have significant holdings in the digital asset. These companies see Bitcoin as a strategic asset that can safeguard their financial stability and provide opportunities for innovation and growth. As more companies explore the benefits of adding Bitcoin to their treasuries, we can expect to see an increase in the adoption of cryptocurrencies in the corporate world.
