- Amazon urged to adopt Bitcoin treasury strategy, to safeguard the company’s reserves from inflation risks.
- The proposal highlights Bitcoin’s outperformance over bonds, gaining traction as a corporate asset.
As a seasoned crypto investor with over a decade of experience navigating the volatile and ever-evolving digital asset landscape, I find the recent proposal by the National Center for Public Policy Research (NCPPR) to be an intriguing development. The suggestion that Amazon should consider adopting Bitcoin as part of its corporate treasury strategy is not only innovative but also a testament to the growing maturity and recognition of cryptocurrencies within traditional financial circles.
In advance of the anticipated April 2025 shareholders meeting, the National Center for Public Policy Research (NCPPR), a think tank based in Washington D.C. promoting free market principles, has put forth a proposal they wish to have under consideration.
The proposal suggests that Amazon should adopt a Bitcoin [BTC] corporate treasury strategy, encouraging the tech giant to allocate a portion of its $88 billion in cash and short-term assets to BTC.
This action underscores the increasing trend towards merging cryptocurrencies with conventional financial approaches, particularly given Bitcoin’s rising prominence as a corporate safeguard against inflation.
Amazon shareholders’ proposal expressed worry about how inflation might affect the substantial amount of cash that Amazon currently holds.
They contended that the Consumer Price Index (CPI) may not provide an accurate reflection of inflation, suggesting instead that the actual inflation rate could be approximately 10%, significantly higher than the 4.95% indicated by the CPI.
Furthermore, they also emphasized the loss of buying power’s potential impact as a considerable threat, suggesting Bitcoin as a possible remedy.
Regardless of its temporary price fluctuations, Bitcoin is said to have consistently surpassed the returns from traditional corporate bonds over time, suggesting that it could serve as an attractive safeguard against monetary dilution or depreciation.
Bitcoin Amazon proposal explained
Expressing their sentiments via the proposal the NCPPR noted,
It would be wise for Amazon to explore increasing their treasury by acquiring assets that grow at a faster rate than bonds, despite the fact that these assets might have short-term volatility.
They added,
By December 6, 2024, the value of a single Bitcoin had risen an impressive 131% compared to the same date the previous year. This growth was significantly higher than the typical increase in corporate bond prices, which averaged only 126% over that period. Looking back over the past five years, the price of Bitcoin skyrocketed by a staggering 1,246%, outpacing the average growth of corporate bonds by a nearly identical margin of 1,242%.
Indeed, my study underscores a growing tendency among businesses to incorporate Bitcoin into their treasury reserves, a pattern that gains prominence in light of insights shared by podcast host Tim Kotzman.
Other institutions eyeing Bitcoin
In light of this, just as companies like MicroStrategy, MARA, and Tesla are increasingly popular, so too is Bitcoin’s allure emphasized by the NCPPR.
For example, MicroStrategy now holds approximately 402,000 Bitcoins, which are worth over $40 billion, making it a trailblazer in the field of Bitcoin acceptance.
In late 2024, MARA (previously known as Marathon Digital) successfully executed a $1 billion convertible bond offering with no interest rate, utilizing the funds to purchase approximately 6,474 Bitcoins for its corporate holdings.
Consequently, although Bitcoin’s price dipped slightly from its momentary high of $100,000 to $98,546.48 (a decrease of 0.60% over the last day), its role as a valuable strategic asset in the corporate sector is gathering more and more importance.
Read More
- HBAR PREDICTION. HBAR cryptocurrency
- SEI PREDICTION. SEI cryptocurrency
- CNY RUB PREDICTION
- GBP EUR PREDICTION
- Rumoured The Elder Scrolls 4: Oblivion Remake Dev is Working on an “Unannounced Unreal Engine 5 Remake”
- INJ PREDICTION. INJ cryptocurrency
- Gaming Colossus Tencent Added to US Blacklist, Accused of Ties to Chinese Military
- The DCU Is Better Off Without More Batman Movies for Awhile
- ICP PREDICTION. ICP cryptocurrency
- USD CHF PREDICTION
2024-12-09 18:16