Amazon Shareholders Urge Bitcoin Adoption as Treasury Asset to Protect Value

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As a seasoned crypto investor with over a decade of experience under my belt, I find the recent proposals by Amazon and Microsoft shareholders to consider Bitcoin as part of their treasury strategy quite intriguing. Having witnessed the rollercoaster ride that is the crypto market, I can attest to its potential volatility. However, the consistent outperformance of Bitcoin compared to traditional financial instruments like corporate bonds is hard to ignore.

Shareholders of Amazon are urging the technological colossus to explore the possibility of including Bitcoin among its treasury assets. They believe this move could safeguard shareholder worth and align with the latest financial fashions.

The request proposes that Amazon’s board evaluates the potential long-term advantages of adopting Bitcoin as part of their overall financial strategy.

Bitcoin’s Appeal Grows

As a researcher, I’m sharing some intriguing insights I’ve come across. Amazon shareholders, under the guidance of the conservative think tank National Center for Public Policy Research (NCPPR), have suggested an innovative strategy. They propose that Amazon, sitting on a substantial $88 billion cash reserve, should consider allocating a portion of it towards Bitcoin.

This proposal is driven by the growing recognition of Bitcoin’s potential as a hedge against inflation, a concern highlighted by the NCPPR’s assertion that traditional metrics like the Consumer Price Index (CPI) may understate actual inflation rates, which it estimates closer to 10%.

Highlighting Bitcoin’s impressive past performance, the NCPPR contends that although it can be unpredictable, this digital currency has repeatedly surpassed conventional investments like corporate bonds. The suggestion also highlights notable instances where businesses have adopted Bitcoin, such as MicroStrategy owning more than 402,000 BTC worth approximately $40 billion and Tesla, which lends credence to this assertion.

Experts believe that if Amazon were to adopt Bitcoin, it could spark a wider trend among big businesses, possibly encouraging industry leaders such as Apple. Notable figures in the field, like Changpeng Zhao of Binance, have been vocal about this suggestion, viewing Bitcoin transactions as a natural progression for Amazon.

Microsoft Faces Push for Bitcoin Diversification

The proposal comes a little over a month after the think tank announced plans to propose a Bitcoin Diversification Assessment at Microsoft’s annual shareholder meeting on December 10.

In simpler terms, the idea presented in a document submitted to the U.S. Securities and Exchange Commission (SEC) encourages Microsoft to think about Bitcoin as a protection against inflation and economic instability worldwide. The suggestion is for the company to invest at least 1% of its total assets in Bitcoin.

As an analyst, I find myself in a position where Microsoft’s board has taken a stance contrary to a proposed idea involving Bitcoin and other cryptocurrencies. Instead of embracing this concept, they have urged shareholders to vote against it. Their reasoning stems from the fact that these digital currencies have previously been evaluated within the company’s financial strategies, and they are continually keeping tabs on them for potential opportunities.

More recently, Michael Saylor, a co-founder of MicroStrategy, has suggested to Microsoft’s leadership that they should consider adopting Bitcoin more extensively.

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2024-12-09 14:38