The National Center for Public Policy Research has suggested that Amazon should consider implementing a Bitcoin treasury, pointing out that MicroStrategy's stock has significantly outperformed Amazon's stock by 537% as a result of its Bitcoin strategy.
The National Center for Public Policy Research, a think tank located in Washington DC that supports free markets, has put forth a proposal to Amazon Corp suggesting the consideration of a Bitcoin (BTC) corporate treasury strategy at the shareholder meeting scheduled for April 2025.
As per the letter from the research institute, the Consumer Price Index (CPI) is being criticized as a flawed measure of inflation, with the current inflation rate of 4.95% potentially being underestimated. The authors of the letter propose that the actual inflation rate could be twice as high as what is officially reported by the CPI.
According to the letter, using Bitcoin to hedge against risk can help protect Amazon's $88 billion in cash and short-term cash equivalents. The National Center for Public Policy Research emphasized the importance of safeguarding shareholder value in this way.
By December 6, 2024, the price of Bitcoin had gone up by 131% compared to the previous year, surpassing the average performance of corporate bonds by 126%. Over the last five years, Bitcoin's price had risen by 1,246%, outperforming corporate bonds by 1,242% on average. The authors suggested that Amazon should invest at least 5% of its assets in Bitcoin to safeguard the value of its treasury assets, pointing to the successful Bitcoin treasury strategy employed by MicroStrategy.
A proposal made by shareholders to Amazon, with information provided by Tim Kotzman and Dennis Porter.
MicroStrategy has the ability to overlook the decrease in Bitcoin prices during a bear market, potentially dropping to $20,000, according to
MicroStrategy is encouraging organizations to consider adopting Bitcoin as a treasury asset. This idea was promoted by MicroStrategy and its founder Michael Saylor, and is now becoming more popular among companies and pension funds.
As per the MicroStrategy Tracker, the value of the company's Bitcoin holdings has surpassed $40 billion, resulting in a profit of around $17 billion for MicroStrategy.
The current performance of MicroStrategy. Source: MSTR Tracker.
MARAs, a mining company previously named Marathon Digital, emulated MicroStrategy by finalizing a $1 billion convertible note offering with no interest due in November 2024. The company utilized the funds to acquire 6,474 Bitcoin for its corporate treasury.
Genius Group, an Artificial Intelligence company, shared that they converted their treasury assets into Bitcoin in November. They began accumulating BTC by purchasing 110 coins at an average price of around $90,932 each.
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