KEY FACT: The National Center for Public Policy Research (NCPPR) has proposed that Amazon allocate 5% of its $88 billion cash reserves to Bitcoin (BTC) to hedge against inflation, citing Bitcoin's superior performance over traditional assets. The proposal, set for discussion at Amazon's April 2025 shareholder meeting, critiques the Consumer Price Index as underestimating inflation's impact on corporate cash. The NCPPR references MicroStrategy's $40 billion Bitcoin strategy, which yielded $17 billion in profits, as a model for corporate adoption. Other companies, like Marathon Digital Holdings and Genius Group, have also integrated Bitcoin into their treasuries. Amazon has yet to comment, but the proposal could influence expanded corporate adoption of cryptocurrency.

Source: Amazon, Bitcoin

National Center for Public Policy Research proposes BTC Treasury to Amazon

The National Center for Public Policy Research (NCPPR), a Washington D.C.-based think tank advocating for free-market solutions, has submitted a shareholder proposal urging Amazon.com Inc. to consider allocating a portion of its treasury assets to Bitcoin (BTC). This proposal is slated for discussion at Amazon's annual shareholder meeting in April 2025.

The National Center for Public Policy Research has submitted the attached shareholder proposal to http://Amazon.com, Inc. for consideration at the 2025 annual shareholder meeting. Shareholders request that the Board assess adding #Bitcoin to the Company’s Treasury.
Source

In its letter, the NCPPR critiques the Consumer Price Index (CPI) as a "remarkably poor measure" of actual currency debasement, suggesting that the true inflation rate may be double the reported 4.95%. This is the rationale for the proposal. The think tank argues that this underreported inflation significantly erodes the value of Amazon's substantial cash reserves, which amount to approximately $88 billion in cash and short-term equivalents. To safeguard shareholder value, the NCPPR recommends that Amazon allocate at least 5% of its assets to Bitcoin, positioning it as a hedge against inflation.

The proposal highlights Bitcoin's impressive performance, noting that as of December 6, 2024, Bitcoin's price had increased by 131% over the previous year, outperforming corporate bonds by 126% on average. Over the past five years, Bitcoin's price surged by 1,246%, significantly outpacing corporate bonds, which averaged a 1,242% lower return.

The NCPPR cites MicroStrategy's success with its Bitcoin treasury strategy as a compelling example. The business intelligence firm, led by CEO Michael Saylor, has become a prominent advocate for corporate Bitcoin adoption. MicroStrategy's substantial Bitcoin holdings, currently valued at over $40 billion, have reportedly yielded approximately $17 billion in profit. This strategy has not only enhanced the company's financial standing but also inspired other organizations to consider similar approaches.

Following MicroStrategy's lead, other companies have explored Bitcoin as a treasury asset. For instance, Marathon Digital Holdings, a cryptocurrency mining company, completed a $1 billion convertible note offering at 0% interest in November 2024. The proceeds were used to purchase 6,474 Bitcoins for its corporate treasury. Similarly, Genius Group, an artificial intelligence firm, announced the conversion of its treasury assets into Bitcoin, initiating its BTC accumulation with the purchase of 110 Bitcoins at an average price of approximately $90,932 per coin.

As of now, Amazon has not publicly responded to the NCPPR's proposal. The company's current investment strategies and stance on cryptocurrency holdings remain undisclosed. The upcoming shareholder meeting in April 2025 will provide a platform for discussing this proposal and its potential implications for Amazon's financial strategy.

The outcome of this proposal could have far-reaching implications for Amazon and its shareholders as well as for the wider acceptance and integration of cryptocurrencies into mainstream corporate finance. If Amazon decides to adopt this approach, it could signal a significant shift in corporate finance, potentially encouraging other major corporations to explore cryptocurrency investments. Conversely, if Amazon opts against the proposal, it may prompt further debate on the role of digital assets in corporate treasury management.

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