AI Summary
- According to recent reports, an Amazon shareholder has considered acquiring Bitcoin as a strategic treasury asset, similar to Microstrategy.
- An Amazon shareholder, The National Center for Public Policy Research, has submitted a proposal to Amazon to consider purchasing Bitcoin and using it as a treasury reserve asset within the company. The report indicates that despite Bitcoin’s volatility, Bitcoin as an asset appreciates better than bonds and therefore, should be considered strategically. .
- The company’s average buy in cost is $49,874 per Bitcoin.
- With El Salvador acquiring Bitcoin and making BTC legal tender in 2021, the country has since profited over $300 million since purchasing $85 million worth of Bitcoin at around $36,000 per token.
According to recent reports, an Amazon shareholder has considered acquiring Bitcoin as a strategic treasury asset, similar to Microstrategy.
An Amazon shareholder, The National Center for Public Policy Research, has submitted a proposal to Amazon to consider purchasing Bitcoin and using it as a treasury reserve asset within the company.
The report indicates that despite Bitcoin’s volatility, Bitcoin as an asset appreciates better than bonds and therefore, should be considered strategically.
Amazon shareholder proposes acquiring BTC as strategic asset
Amazon may consider acquiring Bitcoin as a strategic reserve asset as early as next year after receiving a proposal from a key shareholder.
A United States thinktank, The National Council for Public Policy Research, submitted a proposal on December 8th asking Amazon to make a consideration on Bitcoin, saying that despite its volatility, Bitcoin as an asset appreciates more so than bonds overtime.
From the proposal:
As of December 6, 2024, the price of Bitcoin increased by 131% over the previous year,4 outperforming corporate bonds by 126% on average.
Over the past five years, the price of Bitcoin increased by 1,246%,% outperforming corporate bonds by 1,242% on average.
A new crypto-friendly U.S. administration alongside a strong, Bitcoin ETF in the traditional markets has allowed institutions to seriously consider the cryptocurrency industry, and Bitocin, more seriously as financial assets and reserve currencies.
Microstrategy paved way for Bitcoin adoption
Back in November, Microstrategy leveraged 0% interest senior notes to purchase more Bitcoin. As of November 2024, Microstrategy holds 331,200 Bitcoin, around ($17 billion).
Over the last four years, MicroStrategy has been the main institutional company stacking up on Bitcoin before anyone else and has been holding the tokens as a strategic reserve strategy. The company’s average buy in cost is $49,874 per Bitcoin.
With El Salvador acquiring Bitcoin and making BTC legal tender in 2021, the country has since profited over $300 million since purchasing $85 million worth of Bitcoin at around $36,000 per token.
From Amazon’s proposal:
corporations have a responsibility to maximize shareholder value over the long-term as well as the short-term.
Diversifying the balance sheet by including some Bitcoin solves this problem without taking on too much volatility. At minimum, Amazon should evaluate the benefits of holding some, even just 5%, of its assets in Bitcoin.
