As a seasoned analyst with over two decades of experience in the financial sector, I have witnessed the evolution of digital currencies from a fringe concept to a mainstream investment option. The potential for Bitcoin to become part of Amazon’s treasury strategy is not just intriguing but potentially groundbreaking.
It’s possible that Bitcoin could be incorporated into Amazon’s financial plans, given that their shareholders are advocating for the use of cryptocurrency within the company’s resources.
Should Amazon adopt digital assets, it would align itself with other prominent companies venturing into holding Bitcoin as part of their financial holdings.
Bitcoin As Financial Reserve Option
Investors of Amazon proposed an examination into the potential integration of Bitcoin into the company’s assets, arguing that this pioneering digital currency could boost shareholder value over the long term by acting as a protective measure against inflation.
As an analyst, I’ve recently advised Amazon to explore the possibility of utilizing a portion of their financial reserves to invest in Bitcoin. This strategic move could potentially boost shareholder value and serve as an effective countermeasure against inflation.
Based on a suggestion from the National Center for Public Policy Research (NCPPR), the company’s shareholders are urging the Board to look into whether holding cryptocurrencies within the online store’s treasury aligns with the long-term benefits for shareholders.
HISTORY: SHAREHOLDERS ARE PETITIONING $2.3 TRILLION AMAZON TO BUY #BITCOIN
BTC IS IN THE BEST “LONG-TERM INTEREST OF SHAREHOLDERS”
— 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.
A U.S.-based research organization proposed an idea for Amazon to consider: Investing a small portion of their massive $585 billion in assets into Bitcoin. This recommendation suggests that Amazon might find it advantageous to hold around 5% of its wealth in the digital currency.
In the document, NCPRR pointed out that while Bitcoin’s value can fluctuate significantly, similar to Amazon stock at certain periods, corporations must always aim to boost both short-term and long-term returns for their shareholders, as expressed in the statement.
Researchers propose that incorporating a portion of Bitcoin into the company’s financial structure could add diversity, effectively resolving the issue while minimizing excessive risk from volatility.
Fighting Inflation
According to the NCPRR, the inflation rate in the United States is increasing, and they advise that traditional methods like holding cash or bonds may no longer be the most effective way to safeguard Amazon’s funds.
According to a research organization based in the U.S., the overall inflation rate in the country has been approximately 4.95% over the past four years, and it reached as high as 9.1% in June of this year.
The statement also notes that the actual inflation rate is substantially greater, indicating that numerous studies have found it to be almost twice the Consumer Price Index at times.
According to NCPPR, it would be wise for Amazon to explore investments beyond bonds that offer higher long-term returns, despite the fact that these investments might have short-term volatility, as there may even be a legal obligation (fiduciary duty) to do so.
Simple. Accept bitcoin payments?
Bitcoin A Good Option
According to the NCPPR, Amazon might be able to save billions of dollars for its shareholders if they choose to invest in Bitcoin.
Researchers shared insights on how the value of Alpha Crypto has escalated compared to traditional assets like cash and bonds, which have values below the actual inflation rate. Notably, they pointed out that the digital currency experienced a growth of approximately 130% this year, outperforming bonds in terms of performance.
Data showed that in the last five years, Bitcoin’s value skyrocketed to a phenomenal 1,200%.
The shareholders of the company believe that by investing in Bitcoin, Amazon safeguards its earnings from inflation and could stand to gain higher yields in the long run.
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.
Read More
- ARB PREDICTION. ARB cryptocurrency
- ZK PREDICTION. ZK cryptocurrency
- W PREDICTION. W cryptocurrency
- XRD PREDICTION. XRD cryptocurrency
- XDC PREDICTION. XDC cryptocurrency
- DGB PREDICTION. DGB cryptocurrency
- Vishnu Manchu finally ENDS THE SILENCE over ongoing family feud between Manchu Manoj and Mohan Babu
- CRV PREDICTION. CRV cryptocurrency
- WWE Undisputed Champion Cody Rhodes Drops a Bombshell After His Return
- USD CHF PREDICTION
2024-12-10 02:47