A group of Amazon shareholders is urging the company to allocate at least 5% of its assets to Bitcoin, according to a proposal submitted by the National Center for Public Policy Research (NCPPR).Â
The think tank, known for advocating free-market principles, outlined its case in a letter by Tim Kotzman, emphasising Bitcoin’s potential as a hedge against inflation and a strategy for asset diversification.
Inflation Concerns and Bitcoin as a Hedge
The proposal highlights Bitcoin’s superior performance compared to traditional assets like corporate bonds. It points to the cryptocurrency’s growing adoption by leading companies such as MicroStrategy and Tesla. The authors argue that Amazon’s $88 billion in cash and short-term equivalents is at risk of erosion due to inflation, and Bitcoin could serve as a safeguard for shareholder value.
The letter challenges the accuracy of the Consumer Price Index (CPI), which currently estimates inflation at 4.95%. The authors claim this figure significantly underrepresents the true impact of currency debasement. They suggest that real inflation could be as high as double the reported figure, posing a severe risk to cash reserves.
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“As of December 6, 2024, the price of Bitcoin increased by 131% over the previous year, outperforming corporate bonds by 126% on average,” the proposal states. “Over the past five years, Bitcoin has seen a 1,246% increase in value, significantly outpacing traditional fixed-income investments.”
The NCPPR letter emphasizes that these gains demonstrate Bitcoin’s resilience and potential as a store of value, particularly in an era of rising inflation. It urges Amazon to follow the example of companies like MicroStrategy, which has embraced Bitcoin as a core treasury strategy.
A Growing Push for Institutional Bitcoin Adoption
This proposal is not the NCPPR’s first call for Bitcoin adoption. In October, the organization submitted a similar recommendation to Microsoft, asking the tech giant to consider Bitcoin as an investment.Â
Microsoft’s board, however, advised shareholders to reject the idea, stating that it already evaluates a wide range of investment options, including Bitcoin.
Amazon has yet to issue a public response to the proposal. While the company has shown interest in blockchain technology for applications like supply chain management, it has remained silent on integrating Bitcoin or other cryptocurrencies into its treasury strategy.
The NCPPR believes Amazon’s adoption of Bitcoin could set a precedent for other major corporations. They argue that the move would not only protect Amazon’s assets but also signal confidence in the evolving role of cryptocurrencies in global finance.
Whether Amazon will heed this call remains uncertain. However, the proposal reflects a broader institutional trend toward exploring Bitcoin’s potential as a mainstream asset. As the cryptocurrency market continues to grow, more companies may face similar pressures from stakeholders to consider Bitcoin as part of their financial strategies.
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