Think Tank Wants Amazon to Convert 5% of $88B Reserve to Bitcoin

Key Takeaways:

• The National Center for Public Policy Research submitted a proposal urging Amazon to allocate 5% of its treasury to Bitcoin.
• The proposal warns of high inflation rates, asserting that Bitcoin can protect Amazon’s $88 billion cash reserves from devaluation.
• The think tank referenced MicroStrategy’s success.

The National Center for Public Policy Research (NCPPR), a prominent Washington DC-based think tank advocating free-market policies, has submitted a proposal recommending that Amazon incorporate Bitcoin as a corporate treasury asset. 

The proposal will be discussed during Amazon's annual shareholder meeting in April 2025.

Amazon Urged to Hedge Treasury Assets with Bitcoin

In its letter to Amazon, the think tank urged the e-commerce giant to allocate at least 5% of its treasury holdings to Bitcoin. 

🚨🇺🇸 AMAZON TO DITCH CASH FOR CRYPTO?!

The National Center for Public Policy Research wants Amazon to move 5% of its $88B treasury into Bitcoin, claiming inflation is draining its cash faster than a Prime Day frenzy.

They argue real inflation is double the 4.95% CPI… pic.twitter.com/eYWh3vioTW

— Mario Nawfal (@MarioNawfal) December 8, 2024

The move, it argued, could safeguard Amazon’s financial position while delivering long-term gains.

The think tank’s submission expresses concerns about inflation’s impact on Amazon’s vast cash reserves, which currently total $88 billion in cash and short-term equivalents. 

It criticizes the Consumer Price Index (CPI) as a poor measure of true currency debasement, arguing that actual inflation may be nearly double the reported 4.95% rate.

“As inflation erodes purchasing power, Bitcoin offers a potential hedge to protect shareholder value,” the proposal stated.

The proposal highlights Bitcoin's unparalleled performance as a financial asset. 

Over the past year, Bitcoin’s price surged by 131%, significantly outperforming corporate bonds, which grew by an average of 5%. 

Over the past five years, Bitcoin’s value skyrocketed by 1,246%, compared to a 4% return on bonds during the same timeframe.

The think tank also pointed to Bitcoin’s deflationary properties, contrasting its finite supply of 21 million coins with the seemingly infinite issuance of fiat currencies.

MicroStrategy: A Case Study in Bitcoin Success

Software company MicroStrategy(MSTR), led by executive chairman Michael Saylor, pioneered corporate Bitcoin adoption in 2020, using it as a core treasury asset. 

The company’s holdings, now worth over $40 billion, have yielded approximately $17 billion in profit.

Since adopting Bitcoin, MicroStrategy’s share price has risen by 594%, far outpacing Amazon’s 57% growth over the same period.

As a prominent Bitcoin advocate, Michael Saylor has expanded beyond his role as MicroStrategy's chairman to advise major tech companies like Microsoft on implementing Bitcoin treasury strategies.

This approach has inspired other corporations to follow suit. Bitcoin miner Marathon Digital, now known as MARA, secured $1 billion in November 2024 through a convertible note offering to acquire 6,474 BTC. 

With our 0% $1 billion convertible notes offering, we are excited to share an update:

– Acquired an additional 703 BTC, bringing the total to 6,474 BTC, at an average price of $95,395 per BTC
– YTD BTC Yield Per Share 36.7%
– Total owned BTC: ~34,794 BTC, currently valued at… pic.twitter.com/bzbunlyBRN

— MARA (@MARAHoldings) November 27, 2024

Similarly, the artificial intelligence (AI) firm Genius Group initiated its Bitcoin treasury strategy by purchasing 110 BTC at an average price of $90,932 per coin.

Financial institutions like BlackRock and Fidelity have further legitimized Bitcoin’s role in corporate finance by launching Bitcoin ETFs earlier this year.