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Microsoft not ready to get into Bitcoin just yet

Photo of: Nathan VDH
by Nathan VDH

Microsoft has a war chest of more than 100 billion dollars. But unlike Tesla, the publisher does not plan to invest part of its cash in Bitcoin. But its CEO has no plans to do so.

When it comes to Bitcoin, Brad Smith would more readily fall into the same category as his Uber counterpart, Dara Khosrowshahi. The CEO of the world’s leading software company has no plans to invest the company’s assets in Bitcoin.

Unlike the head of the VTC department, Smith does not go into detail in justifying this decision. Indeed, such an option is simply not on the agenda within Microsoft’s board of directors.

“I haven’t heard any new conversation about Bitcoin. But let me tell you that if we change our investment policy on Bitcoin, Julia, you’ll be the first or at least the second to know,” the CEO told CNN’s Julia Chatterley.

Brad Smith was answering a question from the journalist about the possibility for Microsoft to diversify its investments in the image of Tesla. In February, the automaker allocated $1.5 billion in cash to BTC.

Such a scenario is therefore not envisaged in the short term by the technology giant. However, the technology giant has a very substantial cash position of more than 100 billion dollars. But devoting a part of it to Bitcoin is therefore not a topical issue.

There are several reasons for this. For Uber CEO Dara Khosrowshahi, the main one is security. If the platform has “quickly dismissed” this possibility, it is in order to keep its “money safe”.

Few financial departments are considering integrating crypto-assets into their balance sheets. Only 5% of the CFOs plan to hold Bitcoin as an asset for their company as of 2021. For 84%, the volatility of BTC is too significant a financial risk.

However, the volatility of the asset is decreasing significantly over the years. It could therefore eventually prove to be equivalent to that of precious metals, for example. This would explain the wait-and-see attitude of financial managers.

5% will hold BTC in 2021. For 1%, it should be between 2022 and 2023. Finally, 9% are considering it, but not before 2024 or later according to a study by Gartner. In total, 16% of CFOs, therefore, remain open to Bitcoin in the more or less long term.