Global think tank proposed Bitcoin reserve to Amazon

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As a seasoned researcher who has witnessed the rapid evolution and growth of the digital economy, I find the proposal by the National Center for Public Policy Research to be not only intriguing but also a potential game-changer for Amazon, if implemented effectively.

A global think tank proposed Amazon to include Bitcoin into its strategic reserve by next year. This proposal is the same as Microsoft’s proposed by Michael Taylor a few weeks ago.

The independent global conservative research organization known as the National Center for Public Policy, located in Washington D.C., has suggested to the fifth-largest company worldwide, Amazon, the idea of establishing a strategic Bitcoin (BTC) reserve.

This idea is about suggesting that the company’s current cash and cash equivalents, amounting to approximately $88 billion (consisting of U.S. government, corporate, and foreign bonds), be proposed for investment in Bitcoin, with a goal to implement this strategy by the following annual meeting in April 2025.

It might be beneficial for Amazon, potentially due to a responsibility they hold, to diversify their treasury by investing in assets that grow faster than bonds, even though these investments could have higher short-term volatility.

Based on the document that was shared by Tim Kotzman X’s post on Dec. 09

The U.S. inflation rate reached a peak of 9.1% in June 2022, which is the main reason why the company should adopt Bitcoin as the other company did. As their bond rates also did not exceed the real inflation, it’s not adequate to protect billions of dollars of shareholders by holding these assets.

As a crypto investor, I can’t help but feel a sense of triumph when I consider the remarkable performance of Bitcoin over the past year. Soaring an impressive 131%, it has left traditional investments like bonds in its dust, outperforming them by a staggering 126%. Even more astounding is its comparison to corporate bonds, where it outshines them by a substantial 1.246% in just one year. This phenomenal growth underscores the potential of Bitcoin as an investment option for the future.

MicroStrategy as an example for Amazon

In the year 2020, MicroStrategy initiated a significant step by incorporating Bitcoin as part of their financial holdings. Since then, their stock has experienced a remarkable surge, rising by an impressive 537%. Notably, this growth outpaced Amazon’s (AMZN) stock performance, which saw a gain of just 54% over the same period.

Recently, MicroStrategy’s executive chairman, Michael Saylor, put forth a proposal for Microsoft to establish a Bitcoin reserve, which they are expected to make a decision on by the end of this week.

Additionally, it was noted that Saylor’s actions have been mirrored by numerous corporations and organizations, such as BlackRock and Fidelity, who introduced Bitcoin’s ETF to the stock exchange earlier in the current year.

To sum up, the National Center has suggested Amazon consider diversifying its financial portfolio by investing at least 5% of its assets in Bitcoin. This step isn’t just a trend for tech companies; it also serves to safeguard their assets and maintain shareholder value by tapping into the inflation-resistant potential of digital currencies.

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2024-12-09 02:30