Key Points
- A proposal urges Amazon to adopt a Bitcoin treasury strategy to safeguard against inflation risks.
- The proposal highlights Bitcoin’s performance over bonds and its growing appeal as a corporate asset.
The National Center for Public Policy Research (NCPPR), a DC-based think tank, has proposed that Amazon should consider a Bitcoin corporate treasury strategy. This proposal comes as Amazon prepares for its April 2025 shareholder meeting.
The NCPPR suggests that Amazon should allocate a portion of its $88 billion in cash and short-term assets to Bitcoin (BTC). This idea underscores the increasing interest in integrating cryptocurrencies into traditional financial strategies.
Concerns Over Inflation
Shareholders expressed concerns about the impact of inflation on Amazon’s substantial cash reserves. They criticized the Consumer Price Index (CPI) as an inaccurate measure of inflation, arguing that the actual inflation rate might be closer to 10%, which is double the reported CPI of 4.95%.
The proposal also highlighted the erosion of purchasing power as a significant risk and suggested Bitcoin as a solution. Despite its short-term volatility, Bitcoin has consistently outperformed traditional corporate bonds, making it a compelling hedge against currency debasement.
Bitcoin’s Corporate Appeal
The NCPPR noted in their proposal that Amazon should consider adding assets to its treasury that appreciate more than bonds, even if those assets are more volatile in the short term. They pointed out that the price of Bitcoin has significantly outperformed corporate bonds over the past five years.
This proposal reflects a broader shift among corporations toward adopting Bitcoin as a treasury reserve asset. Companies like MicroStrategy, MARA, and Tesla have already recognized the appeal of Bitcoin. MicroStrategy, for example, has amassed over 402,000 BTC, valued at more than $40 billion.
As Bitcoin’s price briefly surpassed $100,000 before settling at $98,546.48, its significance as a strategic asset continues to gain momentum in the corporate world.