Microsoft’s reputation is highly regarded as a solid and trustworthy tech company. Cowan said that Bitcoin’s “public perception also plays a role” in the final decision-making, which may deter Microsoft’s Bitcoin adoption. “Despite Bitcoin’s growing acceptance, its association with speculative trading, money laundering and environmental concerns could lead to reputational risks.”

“Microsoft has certainly focused a lot recently on AI efforts, and therefore, the board may consider a move such as this too aggressive for the company for the time being,” said Cawrey.

Cowan said that “the board may also prioritize allocating cash reserves to the core and growing business areas such as AI, cloud computing, and acquisitions, which provide more tangible synergies and clearer returns,” rather than to an asset with an uncertain destiny.