The post Amazon Shareholders Explore Bitcoin Allocation as Inflation Hedge Amid Growing Corporate Interest appeared on BitcoinEthereumNews.com.

Amazon shareholders are advocating for the tech giant to allocate a portion of its $88 billion cash reserves into Bitcoin, citing inflation concerns. Amid this push, similar proposals are being considered by Microsoft and other leading firms, reflecting a growing interest in cryptocurrency adoption. Critics, however, raise concerns about Amazon’s cash flow demands, arguing that significant Bitcoin investments might strain the company’s financial stability. Amazon shareholders push for Bitcoin allocation to hedge against inflation, reflecting a broader corporate trend toward cryptocurrency adoption. Amazon Shareholders Advocate for Bitcoin Treasury In a recent proposal, Amazon’s shareholders, led by the National Center for Public Policy Research (NCPPR), expressed serious concerns about the potential erosion of purchasing power due to inflation. They pointed out that Amazon’s substantial cash reserves, estimated at $88 billion, could become less valuable if not allocated to more appreciating assets, citing Bitcoin’s historical performance against traditional assets like corporate bonds. Specifically, the NCPPR’s proposal warns that the Consumer Price Index (CPI) may not fully encapsulate the real inflation experienced by consumers, suggesting a more accurate rate around 10%. The letter argues that, despite Bitcoin’s renowned volatility, its long-term appreciation makes it a compelling alternative for a corporate treasury. “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,” stated the NCPPR in their proposal. Tim Kotzman, a prominent podcaster, also highlighted the significance of this movement on social media, signaling a trend towards corporations adopting Bitcoin as a treasury asset. Notable examples include MicroStrategy and Tesla, which have made significant investments in Bitcoin. Currently, MicroStrategy holds more than 402,000 Bitcoin, valued over $40 billion, as a primary treasury reserve asset, according to Bitcoin Treasuries data. While Amazon has explored…

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Filed under: News - @ December 9, 2024 7:24 am