Microsoft Remains Cautious About Bitcoin Treasury Investment

Microsoft stands firm against investing in Bitcoin as a treasury asset, while Bitcoin analysts anticipate a $100K BTC price by February.

Microsoft has announced its stance against using Bitcoin as an asset in the treasury. Bitcoin might be considered an inflation hedge, but Microsoft would prefer stability and predictable investments over-relying on speculated volatility linked to digital assets like Bitcoin.

Hence, Microsoft urged its shareholders in a filing to the SEC to vote against the Bitcoin proposal, which will be one of the other agendas it plans to discuss in its virtual shareholder meeting on December 10. The board said it had “carefully considered this issue,” but concluded it was not feasible for its treasury.

Greater Stance on Cryptocurrency by Microsoft

According to Microsoft, its main priorities are capital preservation and operational stability rather than speculation with extreme price volatility. However, it will continue to monitor developments and trends actively in the cryptocurrency industry.

The idea of using this cryptocurrency as a treasury reserve asset was based on research by the National Center for Public Policy (NCPP) Research, citing the example of MicroStrategy. This company has made Bitcoin a core part of its treasury strategy.

Notably, returns on BTC by MicroStrategy have outpaced traditional investments. More importantly, it has shown returns that have outstripped Microsoft by more than 300% this year alone, according to the NCPP proposal.

Microsoft’s board pointed out that MicroStrategy’s BTC-heavy treasury may work for its singular operational model, but it does not work for Microsoft’s risk tolerance and operational goals.

The proposal suggested that Microsoft should invest one percent of its investment allocation in BTC, which would be enough to hedge against inflation. The proposal added that Bitcoin’s characteristics make it inflation-resistant and could add value to the company’s financial strategy.

The Growing Bitcoin Appeal Among Corporate Firms

While Microsoft remains conservative, there’s increasing mainstream adoption of Bitcoin among other corporations. These corporations are gaining exposure to Bitcoin through spot Exchange-Traded Funds (ETFs) since they operate in a regulated environment.

Proponents say Bitcoin’s position as “digital gold” is becoming more solidified. They further explained that cryptocurrency is increasingly becoming attractive as an inflation hedge for corporations looking to diversify their portfolios beyond traditional assets.

Bitcoin ETFs have provided the bridge for corporate investors to gain a regulated pathway to Bitcoin exposure without the complexity that comes with direct asset management.

Bitcoin to trade at $100,000 by February 2025 – Analyst

Popular crypto analyst Timothy Peterson recently forecasted that BTC’s price could reach $100,000 as early as February 2025. He forecasts that the leading cryptocurrency is on the path to one of its largest bull runs in history.

He said that factors like increasing institutional interest, growing inflation concerns, and overall market momentum in favor of digital assets will make his prediction come true. Peterson also argued against the notion that the returns of Bitcoin will be weaker with each cycle.

Instead, he predicted that the cryptocurrency’s price trajectory would remain bullish and could reach $100,000 within the next 90 days.

The $60K Price Level

According to Peterson, there is little likelihood of the cryptocurrency breaking below the $60,000 mark, considering how closely its performance has resembled historical price cycles. This price level is also a psychological marker for investors, reassuring them of BTC’s long-term growth potential and resilience to external shocks, whether geopolitical tensions or economic shifts.

Peterson further argued that external factors such as geopolitical events pale into insignificance against more powerful internal market forces pushing this coin’s demand, scarcity, and technological adoption. With zero or low-interest rate policies expected to be announced by the US Fed almost throughout next year, the cryptocurrency will have a greater appeal because investors are seeking yield in a low bond-yield environment.

Caution and Opportunity

The outcome of the shareholder vote by Microsoft in December will be a signal of wider corporate sentiment toward this cryptocurrency as a treasury asset. Whether the leading cryptocurrency experiences a price surge like never before or faces new challenges, the debate on BTC as a strategic treasury asset will continue between its proponents and skeptics.