A global think tank, the National Center for Public Policy Research, has proposed that Amazon include Bitcoin in its strategic reserve by next year. This is similar to the proposal for Microsoft by Michael Taylor a few weeks ago.
The center, an independent global conservative think tank in Washington D.C, wants Amazon, the 5th largest company in the world, to consider adding Bitcoin to its strategic reserve at its next annual meeting in April 2025, replacing part of its $88 billion in cash and cash equivalents like U.S. government, corporate, and foreign bonds.
The main reason is the U.S. inflation rate peaked at 9.1% in June 2022. Bond rates haven’t exceeded real inflation, so these assets can’t adequately protect shareholders’ billions. The center noted Bitcoin’s 131% rise in the past year, outperforming bonds by 126% and corporate bonds by 1.246% in a single year.
MicroStrategy added Bitcoin as a financial asset in 2020, and its stock has risen 594%, outperforming Amazon’s 57% annual increase.Michael Saylor presented the Bitcoin reserve proposal for Microsoft a few weeks ago, and the company will decide this week. Many companies and institutions like BlackRock and Fidelity have followed Saylor’s action and released Bitcoin ETFs earlier this year.
The National Center advised Amazon to diversify its balance sheet by allocating at least 5% of its assets to Bitcoin to preserve shareholder value against inflation with digital assets, a necessary step for tech companies.
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