The National Center for Public Policy Research suggested that Amazon should consider creating a Bitcoin treasury, as MicroStrategy's stock saw a 537% increase compared to Amazon's due to its Bitcoin investments.
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.
The think tank's letter stated that the Consumer Price Index (CPI), which is currently showing inflation at 4.95%, is not an accurate measure of currency devaluation. The authors of the letter proposed that the actual inflation rate could be twice as high as the reported CPI figure.
The National Center for Public Policy Research recommended using Bitcoin (BTC) as a hedge to protect Amazon's $88 billion in cash and short-term cash equivalents from erosion, in order to safeguard shareholder value.
On December 6, 2024, the price of Bitcoin rose by 131% compared to the previous year, surpassing the performance of corporate bonds by an average of 126%. Over the last five years, Bitcoin's price increased by 1,246%, outperforming corporate bonds by an average of 1,242%.
The authors suggest that Amazon should consider allocating at least 5% of its assets to Bitcoin as a way to safeguard the value of its treasury assets. They also mentioned MicroStrategy's successful Bitcoin treasury strategy as an example.
The proposal from shareholders was directed towards Amazon. The information was sourced from Tim Kotzman and Dennis Porter.
MicroStrategy has the ability to overlook the downward price trend of Bitcoin, even if it were to crash to $20,000, according
MicroStrategy is encouraging organizations to consider implementing a Bitcoin treasury strategy. This approach, promoted by MicroStrategy and its founder Michael Saylor, is becoming more popular among corporations and pension funds.
As reported by 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.
MicroStrategy's recent performance can be tracked through MSTR Tracker.
MARAs, a mining company previously known as Marathon Digital, recently raised $1 billion through a convertible note offering with no interest due until November 2024. The company used this funding to acquire 6,474 Bitcoin to add to its corporate treasury, following the strategy set by MicroStrategy.
Genius Group, a company specializing in Artificial Intelligence, made headlines in November when they decided to convert their treasury assets into Bitcoin. They started this process by purchasing 110 BTC at an average price of around $90,932 per coin.
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