NCPPR Proposes Amazon to Invest 5% of Cash Reserves in Bitcoin
The National Center for Public Policy Research (NCPPR), a Washington DC-based free market think tank, has proposed to Amazon that it allocate at least 5% of its $88 billion cash reserves toward Bitcoin (BTC) as a corporate treasury asset. The NCPPR argues that holding BTC could serve as an inflation hedge, citing the performance of companies like Tesla and MicroStrategy, which have incorporated Bitcoin into their balance sheets.
“MicroStrategy, which holds Bitcoin on its balance sheet, has had its stock outperform Amazon stock by 537% in the previous year. And they’re not alone. Institutional and corporate Bitcoin adoption is becoming more commonplace: more public companies such as Tesla and Block have added Bitcoin to their balance sheets, Amazon’s second and fourth largest institutional shareholders – BlackRock and Fidelity, respectively – offer their clients a Bitcoin ETF, and the US government may form a Bitcoin strategic reserve in 2025.”
NCPPR criticized the Consumer Price Index (CPI), currently at 4.95%, claiming it poorly reflects actual currency debasement and suggesting real inflation might be double the reported rate. This situation undermines the value of Amazon's cash reserves, prompting the recommendation for Bitcoin as a strategic hedge against inflation risks.
Amazon and Microsoft Evaluating Bitcoin Treasury Inclusion
Amazon has not yet responded to the NCPPR proposal but has previously shown interest in blockchain technology for supply chain applications. This proposal aligns with a broader movement among institutions to enhance Bitcoin adoption. In October, NCPPR urged Microsoft to consider Bitcoin in its investment strategy; however, Microsoft recommended shareholders vote against this proposal, stating it already evaluates various investable assets, including Bitcoin. NCPPR warned that rejecting Bitcoin investments could lead to shareholder litigation if the cryptocurrency's value rises significantly. A vote on this proposal by Microsoft shareholders is scheduled for December 10.
Following the NCPPR's filing, Amazon's board will assess whether to include the proposal in the proxy statement for the upcoming annual shareholders' meeting, set for April 2025.