The National Center for Public Policy Research suggested that Amazon consider establishing a Bitcoin treasury, pointing out that MicroStrategy's stock performed much better than Amazon's due to their focus on Bitcoin.
The National Center for Public Policy Research, located in Washington DC, is advocating for free markets. They have proposed to Amazon Corp that they consider implementing a Bitcoin corporate treasury strategy at their shareholder meeting in April 2025.
The think tank's letter argues that the Consumer Price Index (CPI) is not an accurate measure of inflation, despite its current reported rate of 4.95%. The authors of the letter believe that the actual inflation rate could be twice as high as the CPI suggests.
The letter mentioned that using BTC to hedge against the risk of inflation would help protect Amazon's $88 billion in cash and short-term cash equivalents, according to the National Center for Public Policy Research.
By December 6, 2024, the price of Bitcoin had risen by 131% compared to the previous year, surpassing the average performance of corporate bonds by 126%. Over the past five years, the price of Bitcoin had increased by 1,246%, outperforming corporate bonds by 1,242% on average. The authors suggested that Amazon should allocate at least 5% of its assets to Bitcoin to safeguard the value of its treasury assets, and they referenced MicroStrategy's successful Bitcoin treasury strategy as an example.
The proposal from shareholders to Amazon was sourced from Tim Kotzman and Dennis Porter.
Related: Research suggests that MicroStrategy can withstand the price drop of Bitcoin in a bear market, even if it were to crash down to
MicroStrategy is encouraging organizations to consider incorporating Bitcoin into their treasury reserves. The concept of using Bitcoin as a corporate treasury strategy, which was promoted by MicroStrategy and its founder Michael Saylor, is becoming increasingly popular among companies and pension funds.
Based on the MicroStrategy Tracker, the value of the company's Bitcoin holdings is now more than $40 billion, which has resulted in a profit of around $17 billion for MicroStrategy.
The current financial results of MicroStrategy. Source: MSTR Tracker.
MARAs, a mining company previously known as Marathon Digital, mimicked MicroStrategy's actions by issuing a $1 billion convertible note at a 0% interest rate in November 2024. The company utilized the funds to acquire 6,474 Bitcoin to add to its corporate treasury.
Genius Group, an Artificial Intelligence company, recently revealed that they have converted their treasury assets into Bitcoin. They started this process by buying 110 BTC at an average price of around $90,932 per coin.
Magazine article: Meitu, often referred to as "China's MicroStrategy," has recently sold off all of its Bitcoin and Ethereum holdings. This news was reported by Asia Express