In recent years, an increasing number of companies have adopted the "BTC standard," which means regularly adding Bitcoin to their balance sheets. However, none of these companies are large enough to shift the global perception of Bitcoin as a reserve asset. Tesla remains the most notable Bitcoin holder among large corporations, but Elon Musk's company lacks an active Bitcoin purchase strategy.
Microsoft had the opportunity to become a major player in the cryptocurrency market. Its shareholders recently voted on a proposal from the National Center for Public Policy Research (NCPPR) to include Bitcoin in the company’s reserves. NCPPR urged Microsoft's board to evaluate whether adding Bitcoin to its balance sheet would benefit the company’s long-term interests.
The company’s board of directors, after conducting an analysis, recommended rejecting the proposal. Shareholders followed this recommendation, and the idea was overwhelmingly rejected, with just 0.55% of votes in favor of adding Bitcoin as a reserve asset.
Microsoft’s largest investors—institutional giants like Vanguard and BlackRock (the firm behind the successful Bitcoin spot ETF)—voted against the proposal. According to Microsoft’s board, the decision was based on their thorough review of Bitcoin, concluding that it doesn’t meet the company’s criteria for balance sheet assets. They argued that corporate reserves should consist of stable, predictable investments that support liquidity and operational funding.
Bitcoin’s volatility makes it unsuitable as a stable investment, like cash. If Bitcoin behaved like cash—losing value over time—it wouldn’t be in demand. Investors typically buy Bitcoin to preserve and grow their wealth, not to guarantee a set amount of capital for future use. Bitcoin is not designed to ensure that a specific amount of money will be available at a future date in its dollar equivalent.
Future proposals to include Bitcoin in corporate reserves are likely to face similar opposition from institutional investors, who will continue to align with company boards' recommendations. However, Bitcoin advocates will likely learn from their initial push for corporate adoption and adjust their strategy.
Rather than presenting Bitcoin as a replacement for traditional liquidity sources, activists should focus on advocating for Bitcoin as a part of long-term corporate investments, alongside other assets like factories, equipment, and intellectual property. This shift in approach would reduce the emphasis on Bitcoin’s volatility, removing one of the major objections to its inclusion in corporate portfolios.
As major investors in large companies, including financial giants that have already launched Bitcoin spot ETFs, the chances of overcoming resistance from traditional finance will significantly improve.