The think tank suggested to Amazon shareholders: at least 5% of assets should be allocated to BTC to protect the value of financial assets

The National Center for Public Policy Research, an advocate of free markets based in Washington, D.C., has submitted a shareholder proposal to Amazon, encouraging the e-commerce giant to consider adopting BTC as a financial reserve asset. This move is in line with the broader trend of large companies exploring the integration of cryptocurrency into their financial frameworks.

The National Center for Public Policy Research has submitted the attached shareholder proposal to Inc. for consideration at the 2025 annual shareholder meeting.

Shareholders request that the Board assess adding #Bitcoin to the Company’s Treasury pic.twitter.com/lsgHC0aGrt

— Tim Kotzman (@TimKotzman) December 8, 2024

According to the think tank's recommendations, the consumer price index (CPI) currently used to measure inflation has an inflation rate of 4.95%, but this is a "very bad indicator" of real currency depreciation. The author states that the real inflation rate may be twice the reported consumer price index number.

The author points out in the proposal that this greatly erodes Amazon's $88 billion in cash and cash equivalents, and in order to protect shareholder value, BTC should be used to hedge this risk. As of December 6, 2024, the price of BTC has risen by 131% compared to the previous year, outperforming the average 126% of corporate bonds. The author concludes by suggesting that Amazon allocate at least 5% of its assets to BTC to protect the value of its financial assets, even citing the success of MicroStrategy's BTC financial strategy.

The proposal emphasizes the increasing interest in BTC and other cryptocurrencies as a viable tool for financial diversification and innovation. Although there is currently no clear indication that Amazon's board of directors is considering this proposal, the trend of companies such as MicroStrategy, TSL (Tesla), and PayPal investing in BTC suggests that this concept is gaining momentum.

The proposal of the National Public Policy Research Center echoes similar moves by other companies, such as MicroStrategy, whose CEO Michael Saylor has been advocating the concept of BTC reserves. Since 2020, MicroStrategy's stock price has soared by 537% after incorporating BTC into its financial assets, surpassing Amazon's 54% rise during the same period.

The efforts to promote Amazon's research on BTC as a financial reserve asset reflect a broader trend of enterprises adopting Crypto Assets. This trend is also reflected in institutional investments, with BlackRock and Fidelity launching BTC ETF earlier this year.

The idea of incorporating BTC into strategic reserves is not new and has been discussed at various levels. For example, Senator Cynthia Lummis, a Republican who supports cryptocurrency, proposed the 'Accelerating Innovation, Technological Investment, and Competitiveness Act' which suggests that the US Treasury and the Federal Reserve purchase 200,000 BTC per year for five years to accumulate a strategic reserve of 1 million BTC. This reserve will serve as a hedging tool against the depreciation of the US dollar and strengthen the national balance sheet.

While Amazon has not taken any action in this direction, the increasing interest of shareholders and the success of other companies in incorporating Bitcoin into their business may affect future decisions. The discussion around companies adopting BTC is still ongoing, and it is currently unclear whether Amazon will follow in the footsteps of other major industry players.

The think tank suggests to Amazon shareholders: at least 5% of assets should be allocated to BTC to protect the value of financial assets. This article was first published in Blockchainer.