The US think tank proposed to Amazon on December 6 to consider MicroStrategy's successful experience, allocating 5% of its assets as a Bitcoin reserve to combat inflation and asset depreciation risks. The proposal is expected to be discussed at Amazon's shareholders' meeting in April 2025.
Amazon's massive cash is facing inflation challenges, and Bitcoin could serve as a hedge solution.
The National Center for Public Policy Research proposed to Amazon on December 6, suggesting that Amazon consider adopting Bitcoin (BTC) as part of its asset reserve strategy to protect its $88 billion in cash and short-term cash equivalents against inflation.
The proposal states that traditional Consumer Price Index (CPI) underestimates the actual inflation rate, with the average inflation rate in the US over the past four years being 4.95%, but the center estimates that actual inflation could be as high as double that, posing a significant threat to Amazon's cash reserves.
The US think tank's proposal for Bitcoin reserves at Amazon is strong, with Bitcoin rising 1246% over the past five years.
The proposal emphasizes that Bitcoin (BTC) has far outperformed traditional assets in recent years:
On December 6, 2024, Bitcoin's price increased by 131% compared to the same period last year, surpassing corporate bond yields by an average of 126%.
In the past five years, Bitcoin's price skyrocketed by 1246%, exceeding corporate bond yields by 1242%.
Data shows that Bitcoin has a clear advantage in value preservation and inflation resistance, making it a viable part of financial reserve strategies.
To serve as a strategic template, the proposal will be discussed at Amazon's 2025 shareholders' meeting.
The proposal specifically mentions that MicroStrategy's adoption of a Bitcoin reserve strategy has significantly outperformed Amazon's stock, growing as much as 537% over five years. The think tank recommends that Amazon allocate at least 5% of its assets to Bitcoin, referencing MicroStrategy's success.
The proposal is expected to be discussed at Amazon's shareholders' meeting in April 2025. If approved, Amazon will become one of the "first" global e-commerce companies to include Bitcoin in its financial reserves. However, whether Bitcoin can serve as a 'cure' for Amazon against inflation and asset depreciation remains to be seen.
Binance founder CZ also replied
As soon as this news broke, Binance co-founder Zhao Changpeng (CZ) also retweeted on Twitter, asking, "Will Amazon be able to pay with Bitcoin in the future?"
CZ also responded on Twitter
(Understanding MicroStrategy from scratch: The transformation from Business Intelligence (BI) to a Bitcoin empire)
This article suggests that the US think tank recommends Amazon to follow MicroStrategy's Bitcoin reserve strategy, to be discussed at the 2025 shareholders' meeting. It first appeared in Chain News ABMedia.
