Amazon’s shareholders demand that the company invest in Bitcoin to diversify its reserves. This proposal was inspired by MicroStrategy’s strategy to overcome inflation and increase shareholder value.
Bitcoin and MicroStrategy Successes
Michael Saylor’s company has reaped the rewards of its Bitcoin reserve creation strategy, which it started in 2020. MSTR shares, which have become a surrogate Bitcoin ETF, received huge demand from investors even before Spot BTC ETF approvals came. Those who wanted to invest in Bitcoin, albeit indirectly, through the stock market safely and in the usual way, collected MSTR shares. In return, they had the opportunity to earn at least as much as the rise of BTC.
Although MicroStrategy operates in the field of business intelligence, the only reason for the intense share demand and volume in the stock market is its huge Bitcoin reserve. In this way, the company’s share price reached and exceeded the dotcom bubble level, a record point, in 2000. Now other companies are adding Bitcoin to their balance sheets to diversify their reserves, increasing demand for shares and creating more cash. On Wednesday, MicroSoft shareholders will vote on the BTC purchase.
Amazon’s Current Financial Situation
The company’s current asset structure does not adequately protect shareholder value, shareholders said in a proposal shared by the National Center for Public Policy Research (NCPPR). It was emphasized that despite possible fluctuations, it could increase value in the long term.
“Although Bitcoin is currently a volatile asset, it is the responsibility of large companies like Amazon to diversify their balance sheet to maximize shareholder value.”
The proposal calls for Amazon to invest at least 5 percent of its assets in Bitcoin (BTC). $99,040.9It was suggested that it should be allocated to . It was stated that Bitcoin increased by 134% this year and exceeded the $100,000 level, outperforming other major assets.
It was also emphasized that MicroStrategy’s shares gained over 500% compared to Amazon’s 49% increase. Additionally, it was stated that companies such as Tesla and Block have also adopted Bitcoin.
It was stated that Amazon’s total assets at the end of the third quarter were $585 billion, of which $88 billion consisted of cash and cash equivalents, and that the current asset mix did not adequately protect shareholder value.
Last month, NCPPR encouraged Microsoft shareholders to invest in Bitcoin with a similar proposal. Microsoft shareholders will vote on the Bitcoin valuation proposal on December 10.
Amazon’s investment in Bitcoin could increase the company’s potential to expand its financial strategy and leverage digital assets.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
