The National Center for Public Policy Research has proposed Amazon invest 5% of its assets in Bitcoin to guard against inflation and enhance diversification.
A Hedge Against Inflation
The NCPPR's proposal aims to protect Amazon's $88 billion in cash and short-term equivalents. The center sees these traditional assets as vulnerable to inflation. The current inflation measure is at 4.95%, but NCPPR argues the true rate might be double, eroding Amazon's reserves. Their proposal identifies Bitcoin's performance, climbing 131% over the last year, as a better option than traditional investments.
Corporate Bitcoin Adoption
The proposal draws parallels to other major companies like MicroStrategy and Tesla. MicroStrategy, which has invested heavily in Bitcoin, has outperformed Amazon by 584% over the past year. Furthermore, Amazon's largest shareholders, BlackRock and Fidelity, offer Bitcoin ETFs to their clients, indicating growing institutional acceptance.
What If Amazon Says Yes?
If Amazon's board allows shareholders to vote on the proposal, it will take place at the annual meeting in April 2025. If adopted, the company might start with a small percentage allocation, marking a cautious beginning to altering its treasury strategy. As of now, Amazon has not commented on the NCPPR proposal, despite its interest in using blockchain technology for supply chain management.
The NCPPR proposal could signify a shift in Amazon's treasury strategy if approved by shareholders.
