As a seasoned analyst with over two decades of experience under my belt, I’ve seen my fair share of market trends and strategies. The recent proposal by the National Center for Public Policy Research to Amazon Corp to consider a Bitcoin (BTC) treasury strategy has piqued my interest.
A research organization based in Washington D.C., known as The National Center for Public Policy Research, which is known for advocating for free markets, has put forward a proposal to Amazon Inc.’s shareholders for discussion at their 2025 annual meeting. This proposal suggests adopting a Bitcoin (BTC) strategy for the company’s corporate treasury as an option to be considered.
In a recent report from the think tank, they argue that the Consumer Price Index (CPI), currently indicating an inflation rate of 4.95%, is not a very accurate reflection of actual currency devaluation. They propose that the real inflation rate could potentially be twice as high as the reported CPI figure suggests.
This significantly reduces Amazon’s $88 billion in quick liquid assets, as per the statement, and to safeguard shareholder worth, it is advisable to employ Bitcoin as a protective measure against this potential risk. The National Center for Public Policy Research suggested:
“As of December 6, 2024, the price of Bitcoin increased by 131% over the previous year, outperforming corporate bonds by 126% on average. Over the past five years, the price of Bitcoin increased by 1,246%, outperforming corporate bonds by 1,242% on average.”
In their final thoughts, the researchers recommended that Amazon consider investing at least 5% of its holdings in Bitcoin as a means to safeguard the worth of its financial reserves, drawing attention to MicroStrategy’s positive outcomes from adopting a similar Bitcoin-focused treasury approach.
MicroStrategy inspires organizations to adopt BTC treasury
The approach of holding Bitcoin as part of a company’s or pension fund’s reserve, initially championed by MicroStrategy and its founder Michael Saylor, is increasingly being adopted by businesses and pension funds.
As per the MicroStrategy Tracker, the value of the company’s Bitcoin reserves now surpasses $40 billion, translating to an approximate profit of around $17 billion for MicroStrategy.
In November 2024, mining company MARA (formerly Marathon Digital), mimicking MicroStrategy’s move, successfully offered a $1 billion convertible note with zero percent interest. The raised funds were then utilized by MARA to acquire 6,474 Bitcoin for its corporate reserves.
In November, the AI company Genius Group revealed their decision to transform their treasury funds into Bitcoins. This move marked the beginning of their Bitcoin treasury accumulation, with them buying approximately 110 Bitcoins at an average cost of around $90,932 per coin.
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2024-12-09 00:57