Amazon evaluates investing 5% of assets in Bitcoin

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by Giorgi Kostiuk

2 years ago

The National Center for Public Policy Research proposed Amazon to allocate 5% of its assets into Bitcoin to hedge against inflation and diversify finances.

A Hedge Against Inflation

The NCPPR's proposal aims to protect Amazon's $88 billion in cash and short-term cash equivalents, arguing that traditional assets like government and corporate bonds are vulnerable to inflation. They believe the actual inflation rate could be twice the official figure, eroding the reserves' value. Investing a portion into Bitcoin, which has outperformed traditional investments, is suggested as a protective measure.

Corporate Bitcoin Adoption

The proposal draws parallels between Amazon and companies like MicroStrategy and Tesla, which have already included Bitcoin in their corporate strategy. For example, MicroStrategy has seen impressive stock gains due to Bitcoin investments. It also highlights that major Amazon shareholders like BlackRock and Fidelity offer Bitcoin ETFs, indicating growing institutional acceptance.

The Next Steps: What Happens if Amazon Says Yes?

If Amazon's board agrees to bring the proposal to a vote, it could be discussed in April 2025. Should the proposal pass, Amazon might start with a cautious allocation of a small percentage of its assets to Bitcoin. However, Amazon has not publicly announced its stance yet.

With the growing interest in Bitcoin across the business sector, Amazon's decision to diversify its assets could signify a significant shift in its strategy.

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