Amazon shareholders, the National Center for Public Policy Research, propose Amazon allocate 5% of its assets to Bitcoin to combat inflation.
On December 9, the National Center for Public Policy Research (NCPPR), a research organization that supports free markets in Washington D.C., submitted a shareholder proposal to Amazon, urging the e-commerce giant to consider establishing a Bitcoin reserve fund at the shareholder meeting in April 2025. This proposal comes amid rising inflation concerns and the success of other companies in adopting similar strategies.
NCPPR argues that the current Consumer Price Index (CPI) of 4.95% does not accurately reflect the depreciation of currency, and the actual inflation rate could be double that. This threatens the value of Amazon's $88 billion in cash and cash equivalents.
The proposal argues that investing in Bitcoin will be an effective risk hedge, protecting shareholder value. NCPPR cites Bitcoin's impressive performance, increasing by 131% in the year up to December 6, surpassing the average increase of corporate bonds at 126%. Over 5 years, Bitcoin has grown by 1,246%, higher than the average increase of corporate bonds at 1,242%.
Shareholder proposal submitted to Amazon. Source: Tim Kotzman, Dennis Porter Bitcoin Reserve Fund: A New Trend?
NCPPR proposes that Amazon allocate at least 5% of its assets to Bitcoin, learning from the successful strategy of MicroStrategy. This software company, under the leadership of Michael Saylor, has pioneered the inclusion of Bitcoin in its reserve fund, attracting interest from many businesses and pension funds. According to MicroStrategy Tracker, the value of Bitcoin held by the company has exceeded $40 billion, yielding approximately $17 billion in profit.
The success of MicroStrategy has created a ripple effect. Marathon Digital (MARA), a cryptocurrency mining company, issued a $1 billion convertible bond with a 0% interest rate in November 2024 to purchase an additional 6,474 Bitcoin for its reserve fund. In the same month, Genius Group, an artificial intelligence company, also announced the conversion of assets in its reserve fund to Bitcoin, starting with the purchase of 110 Bitcoin at an average price of $90,932/BTC.
