The National Center for Public Policy Research has proposed that Amazon allocate 5% of its assets into Bitcoin to hedge against inflation and diversify its treasury.
A Hedge Against Inflation
The proposal by the National Center for Public Policy Research aims to protect Amazon's $88 billion in cash and short-term equivalents. The think tank argues that traditional assets are vulnerable to inflation and recommends Amazon invest in Bitcoin, which has significantly outperformed traditional investments. According to the proposal, Bitcoin increased by 131% over the past year.
Corporate Bitcoin Adoption
The proposal draws parallels between Amazon and companies like MicroStrategy and Tesla that have already adopted Bitcoin as part of their corporate strategies. It also highlights that Amazon's largest institutional shareholders, BlackRock and Fidelity, offer Bitcoin ETFs to their clients.
The Next Steps for Amazon
If the proposal is accepted by Amazon's board of directors, a vote could take place at the shareholders' meeting in April 2025. If approved, the proposal could mark the beginning of a new treasury strategy for Amazon.
Amazon has not yet publicly responded to the proposal, which could potentially signal a new direction in the company's asset management strategy.
