Catenaa, Monday, December 09, 2024-Amazon shareholders are urging the company to invest 5% of its assets in Bitcoin, highlighting the cryptocurrency’s superior returns compared to corporate bonds and its potential as a hedge against inflation.
The proposal, spearheaded by the National Center for Public Policy Research (NCPPR), criticizes the Consumer Price Index (CPI) as an unreliable inflation gauge. It warns that true inflation may be twice the reported 4.95% rate, risking the erosion of Amazon’s $88 billion in cash and short-term assets.
The NCPPR’s letter argues that Bitcoin could better protect shareholder value and urges Amazon to consider the cryptocurrency as a treasury reserve asset.
“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 short-term,” the letter states.
The push for Bitcoin adoption isn’t limited to Amazon.
In October, the NCPPR made a similar appeal to Microsoft, which rejected the proposal, stating that such investment decisions are already under management’s purview.
Amazon, which currently invests in blockchain technology through its Web Services division, has not confirmed any plans to hold cryptocurrency or accept it as payment.
The company’s blockchain initiatives include managed services and job listings for digital currency experts. However, its retail platform remains crypto-free.
The proposal reflects growing momentum for institutional Bitcoin adoption. Public companies like MicroStrategy and Tesla have invested heavily in Bitcoin as a treasury reserve.
MicroStrategy, for instance, holds over 402,000 Bitcoin, valued at more than $40 billion, showcasing the cryptocurrency’s potential to hedge against inflation and economic uncertainty.
