The NCPPR has urged Amazon to allocate 5% of its $48 billion cash reserves to Bitcoin, positioning it as a hedge against inflation.
Washington DC-based free market think tank, the National Center for Public Policy Research (NCPPR), has recently submitted a proposal to tech giant Amazon on behalf of its shareholders to put at least 5% of its $88 billion in cash reserves.
In its proposal suggesting a Bitcoin BTC $98 523 24h volatility: 0.8% Market cap: $1.95 T Vol. 24h: $78.77 B corporate treasury, NCPPR stated that having BTC on the balance sheet would help Amazon as an inflation hedge. Tim Kotzman shared the proposal explaining how Bitcoin is superior in comparison to traditional assets like corporate bonds while pointing out the existing BTC investments done by companies like Tesla and MicroStrategy. In the letter, NCPPR noted:
“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.”
Furthermore, in its letter, the thin tank criticized the calculation of the Consumer Price Index (CPI), currently flashing at 4.95%, and called it a “remarkably poor measure” of actual currency debasement. It suggested that true inflation might be double the reported figure.
This, the letter argued, significantly diminishes the value of Amazon‘s $88 billion in cash and short-term equivalents. To safeguard shareholder value, it recommended Bitcoin (BTC) as a strategic hedge against this risk.
Tech giant Amazon.com Inc (NASDAQ: AMZN) has yet to give its opinion and respond to the NCPPR proposal. However, the company has shown interest in blockchain technology previously, especially for its supply chain applications.
The NCPPR’s suggestion is part of a broader institutional effort to drive Bitcoin adoption. In October, the think tank made a similar appeal to Microsoft, urging the tech giant to consider Bitcoin as part of its investment strategy.
However, Microsoft has recommended its shareholders to vote against the proposal while arguing that the company already evaluates “a wide range of investable assets”, including Bitcoin. The NCPPR cautioned that if Microsoft rejects Bitcoin investments and the cryptocurrency’s value rises significantly, the company could face shareholder litigation. Microsoft shareholders are scheduled to vote on the proposal on December 10.
After the recent filing of the shareholder proposal by NCPPR, Amazon’s board of directors will evaluate it to determine whether or not to include it in the company’s proxy statement for the upcoming annual shareholders’ meeting. If approved for inclusion, the proposal will be presented to shareholders for a vote during the annual meeting, set for April 2025.
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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
