This week, news emerged that on December 10, Microsoft plans to vote on a proposal to invest in Bitcoin. Although their board of directors does not recommend accepting the proposal, we decided to analyze the possible market impact if they vote “yes.”
- Microsoft has $76 billion in cash. If the company were to invest just 10% of this in BTC—about 104,109 BTC at the current rate—that would be 11 times more than Tesla's holdings, for example.
- Supply shortage: such a purchase could cause a serious supply shortage in the market, as exchange balances are at four-year lows, and 80% of all BTC hasn't moved in six months. With less Bitcoin on the market, the price could rise.
- A move like this would lend Bitcoin legitimacy in the eyes of Microsoft, building trust in it as an asset, which is especially important given the remaining Bitcoin skeptics and fearmongers.
- This could also trigger a “domino effect,” where other giant companies follow Microsoft’s lead. Such large-scale decisions could spark a bull run.
Even if the proposal is not accepted, the very fact that it’s being voted on indicates that BTC is becoming impossible for large corporations to ignore.
