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Interest in adopting BTC seems increasingly strong among large companies in the United States and other developed markets. Now, Amazon shareholders believe the e-commerce company should add Bitcoin to its balance sheets. This measure would serve to improve shareholder profits and protect the technology company’s capital.
It is important to keep in mind that the environment of strong inflation and fiscal debt in the United States makes it useless to store capital in cash. Even bond yields fall far below the real loss in value of the fiat currency.
These circumstances push many companies to look for alternatives such as gold and other reserve assets for their corporate balance sheets. In that sense, Amazon investors asked the company to consider the strategy that MicroStrategy promotes through evangelization. Shareholders concede that Bitcoin is a highly volatile asset in the short term, but not in the long term.
Over the last 5 years, the price of Bitcoin experiences a return of +1,200%, which substantially exceeds bond returns. As such, shareholders believe that some of Amazon’s $585 billion in assets and $88 billion in cash should be added to Bitcoin. In a document, investors argue the need to adopt this asset with at least 5% of the technology company’s balance sheets.
Shareholders believe Bitcoin will solve several issues at Amazon
In the aforementioned document shared by the shareholders of the National Center for Public Policy Research (NCPPR), the adoption of Bitcoin resolves several issues. They state that all corporations “have a responsibility to maximize shareholder value in the long term and also in the short term.”
Thus, diversifying balances by adding Bitcoin solves this problem without facing the need to expose oneself to strong volatility. In any case, even though Bitcoin is a volatile asset in the short term, investors assure that this is also the reality of Amazon shares. On the other hand, they argue that the importance of Bitcoin in the future will increase.
The latter has to do with the strong momentum of institutional capital inflows towards the token’s spot ETFs in the US. Added to this is the intention of the incoming government of that country to incorporate Bitcoin into the country’s strategic reserves. They give MicroStrategy as an example, whose shares grew by 537% during the last year.
This initiative joins that of Microsoft shareholders, who are pressuring the company to adopt Bitcoin on its balance sheets. This week the vote will be taken on the decision to incorporate the Cryptocurrency into the reserves of the creator of Windows. While the board of directors expresses its hostility towards the possibility, some shareholders such as BlackRock could vote yes.
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