- A Washington D.C. think tank urges Amazon to adopt a Bitcoin treasury strategy to combat inflation.
- Amazon’s $88 billion cash reserves are argued to be vulnerable to currency debasement.
The National Center for Public Policy Research has submitted a proposal to Amazon.com Inc., urging the tech giant to evaluate adding Bitcoin (BTC) to its corporate treasury. The proposal will be considered at Amazon’s annual shareholder meeting in April 2025.
This initiative aligns with similar efforts, such as the recent Bitcoin treasury proposal for Microsoft by MicroStrategy’s Michael Saylor. The think tank argues that Amazon’s current $88 billion in cash and short-term equivalents is vulnerable to currency debasement due to inflation. They highlighted that the Consumer Price Index (CPI), currently at 4.95%, fails to accurately reflect true inflation, which they estimate could be double the reported figure.
Bitcoin Outperforms Traditional Assets
Citing Bitcoin’s stellar performance, the proposal notes a 131% year-on-year price increase as of December 2024, significantly outpacing corporate bonds, which yielded an average of 126% less. Over five years, Bitcoin’s price surged by 1,246%, dwarfing corporate bond returns.
The National Center pointed to MicroStrategy as a prime example of Bitcoin’s potential. The business intelligence firm’s stock soared 594% since adopting a Bitcoin treasury strategy in 2020, far outperforming Amazon’s 57% stock growth over the same period.
The proposal recommends that Amazon allocate at least 5% of its assets to Bitcoin, emphasizing the cryptocurrency’s role as a hedge against inflation and a tool for shareholder value preservation. The think tank underscored that Bitcoin’s volatility does not outweigh its potential long-term benefits.
Other companies, such as Marathon Digital and Genius Group, have followed MicroStrategy’s lead, integrating Bitcoin into their treasuries. Meanwhile, institutions like BlackRock and Fidelity have introduced Bitcoin exchange-traded funds (ETFs), reflecting growing corporate and institutional acceptance of the digital asset.
Adopting Bitcoin as part of Amazon’s treasury strategy would require addressing several challenges. These include price volatility, regulatory compliance, cybersecurity threats, liquidity management, and accounting complexities. Nonetheless, proponents argue that the move could position Amazon as a leader in technological and financial innovation.
