Global Think Tank Proposes Amazon Include Bitcoin in Strategic Reserve

Proposal of Bitcoin Strategic Reserve to Amazon

An independent global conservative think tank has suggested Amazon consider including Bitcoin in its strategic reserve. This proposal aims to diversify the company’s assets by adding a portion of its cash equivalent into Bitcoin, which has shown significant appreciation compared to traditional bonds.

Rationale for Bitcoin Inclusion

The proposal comes amidst a high U.S. inflation rate, reaching 9.1% in June 2022, which has eroded the value of traditional assets like bonds. With Bitcoin outperforming bonds by 131% in the past year, the potential for higher returns outweighs the volatility associated with the cryptocurrency.

Following MicroStrategy’s Lead

MicroStrategy set a precedent by adding Bitcoin to its treasury in 2020, resulting in a substantial increase in stock performance. This move has inspired other companies, including Amazon, to consider the benefits of diversifying their balance sheets with digital assets like Bitcoin.

Industry Trends Towards Bitcoin Adoption

Companies like Microsoft are also exploring the possibility of integrating Bitcoin into their financial reserves, following in the footsteps of industry leaders like MicroStrategy. With institutions like BlackRock and Fidelity introducing Bitcoin ETFs, the trend towards digital asset adoption is gaining momentum in the financial sector.

Recommendation for Amazon

The National Center suggests Amazon allocate at least 5% of its assets to Bitcoin to mitigate against inflation and safeguard shareholder value. By embracing digital assets like Bitcoin, tech companies can not only stay ahead of the curve but also protect their assets in an era of escalating inflation.