After the proposal to tech giant Microsoft, the U.S. think tank "NCPPR" has turned to Amazon, proposing to invest its balance sheet in bitcoin. Shareholders are expected to vote on the proposal at the annual meeting in April 2025.
The National Center for Public Policy Research (NCPPR) is a conservative US think tank. The organization focuses on free markets, environmental and regulatory policy, constitutional law, religious liberty, and academic freedom. Bitcoin fits well into this agenda. With its proposal, the think tank aims to encourage an investment of 5% of Amazon's balance sheet to protect the tech company's assets from inflation.
Subscribe to our newsletter
The best articles of the week, directly delivered into your mailbox.
MicroStrategy Leads the Way
In times of persistent inflation, a company's financial health is measured not only by its business success, but also by how it invests those profits, the NCPPR said in its Microsoft proposal. Similarly, the think tank advocates a bitcoin investment in Amazon. Companies with a smart investment strategy often grow shareholder value more than more profitable competitors who fail to invest their cash. MicroStrategy is a prime example.
According to the Consumer Price Index (CPI), annual inflation in the United States is nearly 5%. When measured by a more accurate basket of goods, that number nearly doubles, according to the NCPPR. Therefore, a company must earn 10% annually to keep up with inflation. Currently, Amazon holds about $88 billion of its $585 billion balance sheet in U.S. Treasuries and cash equivalents. These assets do not optimally preserve the value of the company's holdings. The authors suggest a 5% bitcoin allocation for Amazon.
"On December 6, 2024, the price of bitcoin was 131% higher than the previous year and outperformed corporate bonds by an average of 126%. Over the past five years, the price of bitcoin has increased 1,246% and outperformed corporate bonds by an average of 1,242%." - Bitcoin proposal to Amazon from the National Center for Public Policy Research
Subscribe to our newsletter
The best articles of the week, directly delivered into your mailbox.
Other companies follow suit
MicroStrategy and its founder Michael Saylor first popularized the bitcoin treasury strategy for corporations. Today, the software company holds nearly 2% of all bitcoin, as CVJ.CH recently pointed out. Other companies have followed suit over the years. Tesla, for example, invested $1.5 billion in bitcoin three years ago, thanks to Saylor's persuasion. Bitcoin miners have also increasingly adopted MicroStrategy's leverage strategy for bitcoin investments.
The chances of an Amazon bitcoin allocation are currently slim. However, the National Center for Public Policy Research's proposals are sparking an important conversation among leading technology companies in the U.S. Sooner or later, other companies will follow. The benefits of diversifying into bitcoin are clear.
