Large companies running get on board? Think tank: Amazon should reserve BTC, Microsoft is expected to prepare to enter the market

Following Microsoft! Think tank proposes Amazon to reserve BTC

According to a report by Cointelegraph, the conservative think tank National Center for Public Policy Research (NCPPR) recently submitted a shareholder proposal to the Amazon board, urging the company to consider investing at least 5% of its assets in Bitcoin (BTC).

The shareholder proposal submitted by NCPPR pointed out that the current inflation rate announced in the United States (4.95%) may only be half of the actual inflation rate. Amazon currently holds approximately $88 billion in cash and short-term equivalent assets, as well as securities and various bonds. This asset portfolio fails to fully protect shareholder value and may face significant depreciation risk.

Meanwhile, BTC has risen 131% in price over the past year (as of 12/6), with a cumulative rise of up to 1,246% over the past five years, far exceeding the average return of corporate bonds.

Regarding the proposal from the think tank, Zhao Changpeng, the former CEO of Binance, pointed out that the simplest question is whether Amazon is going to accept BTC payments. This seems to be a strategy that not only includes reserves but also has the potential to expand the application of BTC.

Image source: Former CEO of X-Binance, Changpeng Zhao (CZ), responds to think tank's proposal for Amazon to hold BTC reserves

Microsoft will decide on 12/10 whether to enter the game, the board has expressed opposition.

"Encryption City" previously reported that NCPPR also suggested that Microsoft invest at least 1% of the company's total assets in BTC as a tool for hedging inflation. Microsoft will hold a shareholders' meeting tomorrow (12/10) to vote on whether to invest in BTC.

However, the Microsoft board has submitted a filing to the Securities and Exchange Commission (SEC) in the United States on October 24, explicitly recommending shareholders to vote against it.

The board claimed that Microsoft already has a sound financial asset management process in place and therefore does not need to adopt the proposal. Although Microsoft accepted BTC payments from 2014 to 2018, it has now discontinued the service.

Ethan Peck, deputy director of the NCPPR Free Enterprise Project, previously stated that if Microsoft refuses to invest in Bitcoin but the price subsequently rises significantly, shareholders may even file lawsuits.

MicroStrategy founder Michael Saylor has also suggested that instead of constantly buying back stocks or holding bonds, Microsoft should directly purchase BTC. If cash flow, dividends, etc. can be converted into BTC, the company's market cap is expected to increase by $5 trillion in ten years.

Further reading: BTC is the future! MicroStrategy suggests that Microsoft abandon stock buybacks and fully embrace BTC

Think tank: What are the benefits of companies holding BTC reserves?

Regarding the Amazon case, NCPPR believes that the company has a responsibility to maximize shareholder value in both the long and short term. Reserving Bitcoin is a way to effectively protect company assets without taking on too much fluctuation risk.

NCPPR, taking MicroStrategy as an example, their BTC investment strategy has brought significant profits to the company. Currently, MicroStrategy's BTC assets have exceeded 40 billion US dollars, with profits of around 17 billion US dollars, and the stock price has risen by over 500% annually. In comparison, Amazon's stock price has only risen by 49% this year.

Bitcoin Treasuries data shows that about 2.5% of the BTC supply (about $51.8 billion) is held by publicly traded companies, with MicroStrategy being the largest holder, followed by the two major miners Marathon and Riot.

Source: Bitcoin Treassuries listed company holds BTC in a chart

This series of actions shows that more and more companies are re-evaluating the potential of BTC as an asset allocation. Regardless of how Microsoft and Amazon ultimately decide, these proposals have successfully brought cryptocurrency into important meetings of large enterprises.

'Big companies get on board with running? US think tank: Amazon should reserve BTC, Microsoft is expected to get ready to enter the game.' This article was first published in 'encryption city'.