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Bitcoin may become part of Amazon’s treasury strategy as shareholders in the online retail giant push for the cryptocurrency to be adopted into its assets.
If Amazon embraces digital assets, it will join other business giants exploring including Bitcoin in their asset portfolios.
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Bitcoin as a financial reserve option
Amazon shareholders have urged the online retailer to evaluate the possibility Adding Bitcoin to its balance sheetSaying that the first cryptocurrency could enhance the value of investors in the long term because it is one way to protect it from inflation.
A US-based think tank asked Amazon to evaluate the possibility of using part of its financial reserve to hold Bitcoin to increase shareholder value and fight inflation.
As recommended by the National Center for Public Policy Research (NCPPR), the company’s shareholders are asking its board of directors to investigate whether the inclusion of cryptocurrencies in the online retailer’s treasury serves the best long-term interests of shareholders.
History: Shareholders demand $2.3 trillion buyout from Amazon #Bitcoin
BTC is in the best “long-term interest of shareholders” 🚀 pic.twitter.com/Nj2wCNrVUn
— Bitcoin Historian (@pete_rizzo_) December 9, 2024
NCPPR submitted a shareholder proposal to Amazon to consider a crypto strategy during the company’s 2025 annual shareholder meeting.
The US think tank suggested that Amazon evaluate the benefits of holding some bitcoin, and encouraged the company to allocate up to 5% of its $585 billion assets to the cryptocurrency.
“Although bitcoin is currently a volatile asset — as Amazon stock has been at times throughout its history — companies have a responsibility to maximize shareholder value in the long term as well as the short term,” NCPRR said in the document.
The researchers said that including some bitcoins could diversify the company’s balance sheet, solving this problem without exposure to too much volatility.
Fight inflation
The US inflation rate is rising, NCPRR said, adding that cash and bonds are no longer the best way to protect Amazon’s money.
The US-based research center noted that in the past four years, the country’s average inflation rate was 4.95%, which rose to 9.1% in June 2022.
She added that the real inflation rate is much higher, saying that many studies have shown that it is sometimes twice the consumer price index.
“Amazon should—and may have a fiduciary duty—to consider adding assets to its treasury that are worth more than the bonds, even if those assets are more volatile in the short term,” the NCPPR noted.
basic. Do you accept payment in Bitcoin? 🤷♂️ https://t.co/ud5PVNYHrj
— Czechoslovakia 🔶 BNB (@cz_binance) December 8, 2024
Bitcoin is a good option
NCPPR believes Amazon can preserve billions of dollars in shareholder value simply by holding Bitcoin.
The researchers explained that the value of the Alpha cryptocurrency is increasing, unlike cash and bonds, which are worth less than the “real inflation rate,” adding that the digital asset has risen by 130% this year, which is a better performance than bonds.
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Data showed that in the past five years, the value of Bitcoin has risen by a whopping 1,200%.
By holding bitcoin, Amazon is protecting its profits from inflation and potentially generating better returns in the future, the company’s shareholders said.
In a post, Changpeng Zhao, former Binance CEO, supports the proposal, offering a simple solution on how Amazon could build its Bitcoin holdings by adding a payment option using the cryptocurrency on its platform.
Featured image from Pexels, chart from TradingView