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COINTURK NEWS > Cryptocurrency News > Shareholders Urge Amazon to Diversify Its Assets with Bitcoin Investments
Cryptocurrency News

Shareholders Urge Amazon to Diversify Its Assets with Bitcoin Investments

In Brief

  • Amazon shareholders request Bitcoin investments to diversify reserves and increase value.

  • MicroStrategy's Bitcoin strategy has led to substantial stock performance and interest.

  • Amazon's asset structure lacks adequate protection for shareholder value, prompting new proposals.

Fatih Uçar
Fatih Uçar 6 months ago
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Shareholders of Amazon are requesting the company to invest in Bitcoin to diversify its reserves. This proposal, inspired by MicroStrategy’s strategy, aims to outpace inflation and increase shareholder value.

Contents
Successes of Bitcoin and MicroStrategyAmazon’s Current Financial Situation

Successes of Bitcoin and MicroStrategy

Michael Saylor’s company has reaped significant benefits from its Bitcoin reserve strategy initiated in 2020. The shares of MSTR, which transformed into a quasi-Bitcoin ETF, saw substantial demand from investors even before the approval of Spot BTC ETFs. Those looking to invest indirectly in Bitcoin through traditional means acquired MSTR shares, gaining opportunities for profits at least as great as those from BTC appreciation.

Although MicroStrategy operates in the business intelligence sector, the primary reason for the heightened stock demand and volume is its massive Bitcoin reserves. This has propelled the company’s share price to reach record heights, surpassing levels seen during the dot-com bubble in 2000. Other companies are now adding Bitcoin to their balance sheets to diversify reserves and generate more cash by increasing stock demand. On Wednesday, Microsoft shareholders will vote on Bitcoin acquisition.

Amazon’s Current Financial Situation

Shareholders indicated in a proposal shared by the National Center for Public Policy Research (NCPPR) that the company’s current asset structure does not sufficiently protect shareholder value. Despite potential fluctuations, they emphasized the long-term value increase Bitcoin could provide.

“Despite Bitcoin’s current volatility, it is the responsibility of major companies like Amazon to diversify their balance sheets to maximize shareholder value.”

The proposal suggests that Amazon should allocate at least 5% of its assets to Bitcoin (BTC) $104,834. It was noted that Bitcoin has risen 134% this year, surpassing the $100,000 mark, outperforming other major assets.

Additionally, it was highlighted that MicroStrategy’s stock had achieved over 500% gains compared to Amazon’s increase of 49%. The article also mentioned that companies like Tesla and Block have adopted Bitcoin.

By the end of the third quarter, Amazon’s total assets were reported at $585 billion, with $88 billion in cash and cash equivalents. The existing asset mix reportedly does not adequately protect shareholder value.

Last month, NCPPR similarly encouraged Microsoft shareholders to invest in Bitcoin. Microsoft shareholders will vote on the Bitcoin valuation proposal on December 10.

Investing in Bitcoin could expand Amazon’s financial strategy and enhance its potential to leverage digital assets.

You can follow our news on Telegram, Facebook, Twitter & Coinmarketcap
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.

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Fatih Uçar 9 December, 2024 - 11:44 am 9 December, 2024 - 11:44 am
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