The National Center for Public Policy Research has suggested that Amazon should consider creating a Bitcoin treasury similar to MicroStrategy. This recommendation was made based on the fact that MicroStrategy's stock has significantly outperformed Amazon's stock by 537% as a result of its Bitcoin investment strategy.
The National Center for Public Policy Research, a think tank in Washington DC that supports free markets, has proposed to Amazon Corp that they consider implementing a Bitcoin corporate treasury strategy at their shareholder meeting in April 2025.
As stated in the letter from the research group, the Consumer Price Index (CPI) is a flawed method of measuring inflation, currently showing a rate of 4.95%. The authors of the letter propose that the actual inflation rate could be twice as high as what the CPI indicates.
The letter pointed out that using Bitcoin (BTC) as a hedge could help protect Amazon's $88 billion in cash and short-term cash equivalents from erosion. The National Center for Public Policy Research emphasized the importance of safeguarding shareholder value in this manner.
By December 6, 2024, the price of Bitcoin had gone up by 131% compared to the previous year, surpassing the performance of corporate bonds by 126% on average. Over the last 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 consider allocating at least 5% of its assets to Bitcoin in order to safeguard the value of its treasury assets. They also mentioned the success of MicroStrategy's Bitcoin treasury strategy as a reference.
A proposal from shareholders has been submitted to Amazon. This information comes from Tim Kotzman and Dennis Porter.
MicroStrategy is able to overlook the decrease in Bitcoin's price during a bear market, potentially dropping to $20,000. This information
MicroStrategy encourages companies to consider adopting Bitcoin as a treasury asset. The strategy of holding Bitcoin in corporate treasuries, popularized by MicroStrategy and its founder Michael Saylor, is becoming more widely adopted by businesses and pension funds.
As reported by the MicroStrategy Tracker, the value of the company's Bitcoin holdings is now more than $40 billion, resulting in a profit of around $17 billion for MicroStrategy.
The latest updates on how MicroStrategy is currently performing can be found on MSTR Tracker.
The mining company MARA, previously called Marathon Digital, imitated MicroStrategy's actions by finalizing a $1 billion convertible note offering at 0% interest in November 2024. MARA utilized the raised funds to buy 6,474 Bitcoin to add to its corporate treasury.
Genius Group, a company specializing in Artificial Intelligence, revealed that they converted their treasury assets into Bitcoin in November. They started accumulating Bitcoin for their treasury by buying 110 BTC at an average price of around $90,932 per coin.
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