Amazon, the world’s fifth-largest company, has been proposed to include Bitcoin in its strategic reserve by next year, according to a global think tank. This suggestion mirrors a similar proposal made by Microsoft a few weeks ago.

National Center for Public Policy Research Proposal

The National Center for Public Policy Research, an independent global conservative think tank based in Washington D.C, has put forth the proposal to Amazon. The think tank aims to have the company consider adding Bitcoin to its strategic reserve by the next annual meeting in April 2025. The proposal targets the company’s $88 billion cash and cash equivalents, which include U.S. government, corporate, and foreign bonds.

“Amazon should – and perhaps has a fiduciary duty to – consider adding asset to its treasury that appreciate more than bonds, even if those assets are more volatile short-term.”

US Inflation Rate and Bitcoin Performance

The U.S. inflation rate peaked at 9.1% in June 2022, prompting concerns about the adequacy of bonds in protecting shareholder assets. The National Center noted that Bitcoin’s performance in the past year has risen by 131%, surpassing bonds by 126%. Additionally, Bitcoin outperformed corporate bonds by 1.246% in a single year.

MicroStrategy as a Model for Amazon

MicroStrategy, a company that added Bitcoin to its financial assets in 2020, has seen its stock performance rise by 594% in a year. In contrast, Amazon’s stock (AMZN) increased by only 57% in the same period. The National Center cited MicroStrategy as an example for Amazon to follow.

Tips for Investors

Investors can consider the following points when evaluating the potential benefits of adding Bitcoin to a strategic reserve:

  • Diversify your portfolio by allocating a portion of your assets to Bitcoin or other cryptocurrencies.
  • Assess the potential long-term benefits of Bitcoin despite its short-term volatility.
  • Consider the impact of inflation on traditional assets and the potential for Bitcoin to appreciate in value.

The National Center has advised Amazon to diversify its balance sheet by adding at least 5% of its assets into Bitcoin. This move could help preserve the value of shareholder assets and protect against inflation.

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