The Policy Center proposed that Amazon consider investing part of its assets in Bitcoin, citing its high performance compared to traditional assets.
A Hedge Against Inflation
The proposal aims to protect Amazon's $88 billion in cash assets, which include U.S. government, corporate, and foreign bonds. The Center argues these are vulnerable to inflation. The CPI rate is reported at 4.95%, but real inflation might be higher, eroding Amazon's reserves.
Corporate Bitcoin Adoption
The proposal highlights the success of companies like MicroStrategy and Tesla that have already adopted Bitcoin. Amazon's largest institutional shareholders, BlackRock and Fidelity, offer Bitcoin ETFs, indicating growing acceptance.
The Next Steps for Amazon
If Amazon's board approves a vote, it will take place in April 2025. A successful proposal could lead to Amazon allocating part of its assets to Bitcoin. However, Amazon has not publicly responded to the proposal yet.
Amazon's decision on Bitcoin inclusion in its portfolio could significantly alter its asset management strategy.
