Amazon Shareholders Push for Bitcoin Treasury as Hedge against Inflation
With the upcoming annual shareholder meeting in April 2025 looming, the National Center for Public Policy Research (NCPPR), a think tank from Washington DC advocating for open markets, has put forth a proposal that they wish to see deliberated by Amazon.
The proposition revolves around the suggestion that Amazon should incorporate a Bitcoin (BTC) corporate treasury strategy, urging the tech behemoth to assign a segment of its $88 billion in cash and short-term assets to BTC.
This initiative underscores the surging interest in blending cryptocurrency into conventional financial frameworks, especially with Bitcoin emerging as a corporate shield against inflationary pressures.
The submission from Amazon stakeholders has brought forth serious apprehensions regarding inflation’s repercussions on Amazon’s substantial cash reserves.
In disapproving the accuracy of the Consumer Price Index (CPI) as an inflation gauge, they have contended that the actual inflation rate could gravitate closer to 10%, which is double the reported 4.95% by the CPI.
Moreover, they have accentuated the threat of diminishing purchasing power and have put forth BTC as a viable antidote.
Despite its near-term volatility, the proponents argue that Bitcoin has consistently surpassed conventional corporate bonds in performance, positioning it as an attractive hedge against currency devaluation.
Breaking Down the Bitcoin Proposal for Amazon
The NCPPR articulated their stance through the proposal, emphasizing,
“Amazon should, and conceivably has an obligation, to ponder over adding assets to its treasury that exhibit more appreciation than bonds, even if these assets experience short-term volatility.”
They further stated,
“On December 6, 2024, Bitcoin’s value surged by 131% in the past year, outstripping corporate bonds by an average of 126%. Over the last five years, Bitcoin’s value escalated by 1,246%, overshadowing corporate bonds by an average of 1,242%.”
Consequently, the proposal mirrors a broader trend observed among corporations leaning towards embracing Bitcoin as a reservoir asset, a development that is underscored by podcaster Tim Kotzman.
Interest from Other Institutions in Bitcoin
In this context, drawing parallels with industry stalwarts like MicroStrategy, MARA, and Tesla, the NCPPR reiterated the escalating allure of Bitcoin.
For instance, MicroStrategy has amassed a staggering 402,000 BTC, valued at over $40 billion, solidifying its position as a pioneer in embracing Bitcoin.
Similarly, MARA (formerly Marathon Digital) executed a $1 billion convertible note offering at 0% interest towards the end of 2024, utilizing the funds to procure 6,474 BTC for its corporate reserves.
Hence, with Bitcoin briefly breaching the $100,000 mark before retracting to $98,546.48, reflecting a 0.60% downturn over the preceding day, its significance as a strategic asset continues to surge in the corporate realm.