Amazon, the world’s fifth-largest company by market capitalization, has been encouraged to explore Bitcoin as a strategic treasury investment. This move aligns with a growing trend among public companies adopting Bitcoin as part of their reserve assets.
In a letter shared by Tim Kotzman, The National Center for Public Policy Research—an American-based conservative global think tank—proposed that Amazon allocate Bitcoin to its treasury portfolio. The proposal is set to be discussed at Amazon’s annual meeting in April 2025.
The think tank suggested that a portion of Amazon’s $88 billion in cash and equivalents—currently invested in U.S., corporate, and foreign bonds—be redirected to Bitcoin purchases.
The group cited the U.S. Consumer Price Index (CPI), which measures inflation, currently at 4.95%, as a “poor measure” of currency depreciation. They estimated that real inflation could be double the reported figure.
“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 in the short term,” the think tank argued.
Bitcoin’s performance supports this assertion, with its price surging 131% year-on-year as of December 6, 2024, compared to the average corporate bond yield of 126%. Over the past decade, Bitcoin outperformed corporate bonds by a staggering 1,246%.
Following MicroStrategy’s Lead
The National Center for Public Policy Research recommended that Amazon allocate at least 5% of its cash reserves to Bitcoin, citing MicroStrategy’s successful adoption of a similar strategy since 2020.
MicroStrategy, the largest public Bitcoin holder with 402,100 BTC, has seen its stock grow by 594% since adopting Bitcoin as a treasury asset. By comparison, Amazon’s stock (AMZN) has risen by just 57% during the same period.
MicroStrategy’s strategy has inspired major companies, including Microsoft. Recently, MicroStrategy Executive Chairman Michael Saylor proposed that Microsoft consider adding Bitcoin to its balance sheet. This proposal is scheduled for discussion at Microsoft’s shareholder meeting on December 10, 2024.
Other companies, such as Marathon Digital Holdings (MARA) and Semler Scientific, have also embraced Bitcoin. In November 2024, MARA completed a $1 billion zero-interest convertible bond offering, using the funds to purchase 6,474 BTC as part of its treasury strategy.
Similarly, medical technology firm Semler Scientific added 1,873 BTC to its financial reserves, making it the 14th-largest public Bitcoin holder globally. The company adopted this strategy in May 2024, citing Bitcoin’s immense potential as “digital gold” for the modern era.
This growing adoption of Bitcoin among corporate giants may influence Amazon’s decision as it considers whether to embrace this transformative financial strategy.
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