Can Bitcoin Solve Inflation for Amazon and Microsoft?
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Ethan Peck urges Amazon and Microsoft to explore Bitcoin to combat inflation and preserve shareholder value. Shareholder proposals can drive corporate Bitcoin adoption but face resistance from asset managers and technical hurdles. Corporate America is facing a compelling question: Should tech giants like Microsoft and Amazon add Bitcoin to their balance sheets? Ethan Peck, Deputy Director of the Free Enterprise Project, has helped this argument pick up steam. Peck stated in a recent interview with Anthony Pompliano on his YouTube channel his attempts to bring shareholder recommendations asking big companies to invest in Bitcoin. The inducement is eventually, by addressing financial inefficiencies brought on by inflation and underperforming bonds, benefits will flow to owners. Peck’s method stems from a basic but novel concept: inflation is unintentionally erasing value in companies with large cash balances. His idea calls for Bitcoin as a deflation-proof asset to increase shareholder wealth preservation and expansion. But why are companies reluctant to adopt this vision, and exactly how do these shareholder motions work? Evaluating Bitcoin: Microsoft’s Missed Opportunity? With its large cash reserves, Microsoft was clearly the target for Peck’s initial Bitcoin proposition. Cash reserves plus low-yield bonds fall short of inflation as he described to Pompliano. Consistent deterioration of shareholder value follows from this. Although Peck’s suggestion did not call for a quick response, it urged businesses to consider Bitcoin’s feasibility in line with their financial plan. “Corporate fiduciary responsibility to their shareholders,” Peck said. He added: “They are neglecting their responsibility to maximize returns if they are not investigating Bitcoin as a solution.” Though this argument makes sense, Microsoft and other corporate behemoths have demonstrated resistance. The idea was turned down by Microsoft’s board, and just 0.5% of the shareholders approved. But as Peck noted, institutional asset managers like BlackRock and Vanguard owning significant…
Filed under: News - @ January 12, 2025 8:11 am