The strong evolution in the price of Bitcoin in recent times validated the strategy of procrypto firms such as MicroStrategy, which has its reserves in BTC, and which has multiplied its value so far this year.
A group of shareholders amazon wants the e-commerce giant to imitate the firm chaired by Michael Saylor, MicroStrategy, and have part of its reserves in Bitcoin. Thus, the National Center for Public Policy Research (NCPPR), recommended to the company chaired by Jeff Bezos that “You should evaluate the benefits of keeping some, even just 5%, of your assets in Bitcoin.”
“Although bitcoin is currently a volatile asset – as Amazon stock has sometimes been throughout its history – lCompanies have a responsibility to maximize shareholder value in both the long and short term. Diversifying the balance sheet by including some bitcoin solves this problem without assuming too much volatility,” they explained in a statement.
The technology giant looking to invest in Bitcoin
According to the ‘think tank’, the real inflation rate could be double and, therefore, The $88 billion that Amazon has in cash, government bonds and corporate bonds could be significantly devalued. At the end of the third quarter, Amazon had $585 billion in total assets.
These shareholders maintain that Amazon should imitate MicroStrategy and invest part of its assets in Bitcoin to protect against the effects of inflation.
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“As of December 6, 2024, the price of Bitcoin is up 131% over the past year, outperforming the average corporate bond yield by 126%. Over the past five years, the price of bitcoin has risen 1,246%, outperforming corporate bonds by an average of 1,242%“said the NCPPR.
“Although Amazon, one of the world’s most valued technology companies, has demonstrated a cautious attitude towards cryptocurrencies in the past, pressure from shareholders and the change in the global financial landscape could lead the company to reconsider its position on bitcoin and crypto assets. The inclusion of bitcoin in Amazon’s reserve treasury could not only strengthen the company’s financial position, but also send a message of confidence to the market about the long-term viability of cryptocurrencies as a reserve asset.“, they explain from Bit2Me.
This proposal will be debated at Amazon’s General Shareholders’ Meeting, which will be held next month. April. But the e-commerce giant is not the only one that will take this issue to a vote.
Source: Ambito
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