This article is also available in Spanish.
Bitcoin could become part of Amazon’s treasury strategy as shareholders of the online retail giant push for the cryptocurrency to be adopted into its assets.
If Amazon embraces digital assets, it will join other business titans exploring the inclusion of Bitcoin in their asset portfolios.
Related reading
Bitcoin as a financial reserve option
Amazon shareholders urged the online retailer to evaluate the possibility of adding Bitcoin to your balancesaying that the first-born cryptocurrency could increase value for long-term investors because it is a way to protect it from inflation.
A US-based think tank asked Amazon to evaluate the possibility of using a portion of its financial reserve to hold Bitcoin to increase value for its shareholders and combat inflation.
According to a recommendation from the National Center for Public Policy Research (NCPPR), the company’s shareholders are asking its board of directors to investigate whether the inclusion of cryptocurrencies in the online retailer’s treasury serves the best long-term interests of the shareholders.
STORY: SHAREHOLDERS ARE REQUESTING $2.3 TRILLION FROM AMAZON TO BUY #BITCOIN
BTC IS THE BEST “LONG-TERM SHAREHOLDER INTEREST” 🚀 pic.twitter.com/Nj2wCNrVUn
— The Bitcoin Historian (@pete_rizzo_) December 9, 2024
The NCPPR submitted the shareholder proposal to Amazon to consider crypto strategy during the company’s 2025 annual shareholder meeting.
The American think tank suggested that Amazon should evaluate the benefits of holding some Bitcoin, encouraging the company to allocate even 5% of its $585 billion of assets to the cryptocurrency.
“Although Bitcoin is currently a volatile asset, as Amazon stock has been throughout its history, corporations have a responsibility to maximize shareholder value in both the long and short term,” the 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 the inflation rate in the United States is increasing and added that cash and bonds are no longer the best method 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 set at 4.95%, which even rose to 9.1% in June 2022.
He added that the true rate of inflation is significantly higher, and said several studies showed that it is sometimes almost double the consumer price index.
“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 in the short term,” the NCPPR commented.
Simple. Accept payments with bitcoins? 🤷♂️
– Czech Republic 🔶 BNB (@cz_binance) December 8, 2024
Bitcoin a good option
The NCPPR believes that Amazon could preserve billions of dollars of value for shareholders simply by holding Bitcoin.
The researchers explained that the alpha cryptocurrency has been increasing in value unlike cash and bonds whose value is lower than the “real inflation rate,” adding that the digital asset has increased by 130% this year, which is performing better than bonuses.
Related reading
The data showed that in the last five years, the value of Bitcoin skyrocketed by 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 and offers a simple solution for how Amazon can build its Bitcoin holdings by adding a payment option using cryptocurrencies on its platform.
Featured image from Pexels, chart from TradingView
