Bitcoin might become part of Amazon’s treasury strategy as the online retail giant’s shareholders are pushing for the adoption of the cryptocurrency in its assets.
If Amazon embraces digital assets, it will join other business titans exploring the inclusion of Bitcoin in their asset portfolios.
Bitcoin As Financial Reserve Option
Shareholders of Amazon urged the online retail store to evaluate the possibility of adding Bitcoin to its balance sheet, saying that the firstborn cryptocurrency could enhance the investors’ value in the long term because it is one way of protecting it from inflation.
A US-based think tank told Amazon to assess the prospect of using a portion of its financial reserve to hold Bitcoin to increase its shareholder’s value and fight off inflation.
According to a recommendation made by the National Center for Public Policy Research (NCPPR), the shareholders of the company are asking its Board to investigate if including cryptocurrencies into the treasury of the online retail store serves the best long-term interests of shareholders.
HISTORY: SHAREHOLDERS ARE PETITIONING $2.3 TRILLION AMAZON TO BUY #BITCOIN
BTC IS IN THE BEST “LONG-TERM INTEREST OF SHAREHOLDERS” ???? pic.twitter.com/Nj2wCNrVUn
— The Bitcoin Historian (@pete_rizzo_) December 9, 2024
The NCPPR submitted the shareholder proposal to Amazon to consider the crypto strategy during the company’s 2025 annual shareholders’ meeting.
The American think tank suggested that Amazon should assess the benefits of holding some Bitcoin, encouraging the company to allot even 5% of its $585 billion assets to the cryptocurrency.
“Though Bitcoin is currently a volatile asset – as Amazon stock has been at times throughout its history – corporations have a responsibility to maximize shareholder value over the long-term as well as the short-term,” NCPRR stated in the document.
The researchers said that including some Bitcoins can diversify the company’s balance sheet, solving this problem without taking on too much volatility.
Fighting Inflation
The NCPRR said that the inflation rate in the US is going up, adding that cash and bonds are no longer the best approach to protect Amazon’s money.
The US-based think tank cited that in the last four years, the average inflation rate in the country is pegged at 4.95%, which even went up to 9.1% in June 2022.
It added that the true inflation rate is significantly higher, saying that several studies showed that it is nearly double the Consumer Price Index on occasion.
“Amazon should – and perhaps has a fiduciary duty to – consider adding assets to its treasury that appreciate more than bonds, even if those assets are more volatile short term,” NCPPR remarked.
Simple. Accept bitcoin payments? ????♂️ https://t.co/ud5PVNYHrj
— CZ ???? BNB (@cz_binance) December 8, 2024
Bitcoin A Good Option
The NCPPR believes that Amazon could preserve billions of dollars of shareholder value by simply holding Bitcoin.
The researchers explained that the alpha crypto has been increasing in value unlike cash and bonds whose value is lower than the “true inflation rate”, adding that the digital asset surged by 130% this year, which is performing better than bonds.
Data showed that in the last five years, Bitcoin’s value skyrocketed to a phenomenal 1,200%.
The company’s shareholders said that by holding Bitcoin, Amazon protects its profits from inflation and potentially generates better returns in the future.
In a post, former Binance executive Changpeng Zhao supports the proposal, offering a simple solution on how Amazon can build its Bitcoin holdings by adding a payment option using cryptocurrency on its platform.
Featured image from Pexels, chart from TradingView
Christian Encila
They say journalists never truly clock out. But for Christian, that’s not just a metaphor, it’s a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.
Christian’s journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).
Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling – right up his alley!
So, he landed a killer gig at NewsBTC, where he’s one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).
Think Christian’s all work and no play? Not a chance! When he’s not at his computer, you’ll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.
Speaking of chill, Christian’s got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.
Here’s the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day – and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.
Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors – and bosses – he deeply respects.
So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.
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Christian Encila