Nikolas Sargeant
A Bitcoin-focused think tank, the National Center for Public Policy Research (NCPPR), has proposed that Amazon invest 5% of its assets in Bitcoin, arguing it could protect against potential currency devaluation and provide superior returns compared to traditional corporate bonds.
The Inflation Hedge Debate
The proposal highlights growing institutional interest in cryptocurrency, with podcaster Tim Kotzman sharing details about the recommendation on X. The think tank criticizes the Consumer Price Index (CPI), suggesting the true inflation rate might be significantly higher than the reported 4.95%. This concern stems from the potential erosion of Amazon's substantial $88 billion cash and short-term asset reserves.
"Amazon should – and perhaps has a fiduciary duty to – consider adding assets to its treasury that appreciate more than bonds, even if those assets are more volatile short-term," the National Center for Public Policy Research wrote. The proposal aligns with broader trends of institutional crypto adoption, following similar moves by companies like MicroStrategy and Tesla.
While Amazon has not confirmed plans to hold cryptocurrency, the company remains engaged with blockchain technology. Through Amazon Web Services, they offer managed blockchain services and have actively recruited digital currency and blockchain experts, signaling potential future interest in the crypto ecosystem.
In a parallel move, NCPPR recently urged Microsoft to consider Bitcoin investments. However, Microsoft recommended shareholders reject the proposal, indicating ongoing corporate hesitancy towards direct cryptocurrency treasury investments.
MicroStrategy has been a pioneer in this space, leading the way in adopting Bitcoin as a primary treasury reserve asset. Since August 2020, the company has been purchasing Bitcoin to guard against inflation and economic risks. According to Bitcoin Treasuries, they now hold 402.1k Bitcoin, worth over $40 billion.
Despite these recommendations, Amazon currently does not accept cryptocurrency as payment on its shopping platform. The proposal represents a significant push for the company to reconsider its stance on digital assets and explore alternative treasury management strategies.
