The National Center for Public Policy Research, a free-market advocacy group based in Washington, D.C., has submitted a shareholder proposal urging Amazon to adopt a Bitcoin treasury strategy. The proposal will be considered at Amazon’s April 2025 shareholder meeting, aiming to protect shareholder value by leveraging Bitcoin as a hedge against inflation and currency debasement.
Bitcoin as a Hedge Against Inflation
The think tank’s proposal highlights concerns about the true rate of inflation. According to their analysis, the Consumer Price Index (CPI), which reports inflation at 4.95%, significantly underestimates the actual erosion of currency value. The authors argue that the real inflation rate could be double the official figure, which threatens the value of Amazon’s $88 billion in cash and short-term cash equivalents.
The proposal points out that Bitcoin has dramatically outperformed traditional financial instruments.
- 1-Year Performance: Bitcoin rose 131% in the past year, outperforming corporate bonds by 126%.
- 5-Year Performance: Over five years, Bitcoin surged 1,246%, far surpassing corporate bonds, which increased by just 4%.
Based on these figures, the think tank recommends Amazon allocate at least 5% of its assets to Bitcoin to preserve the value of its treasury and safeguard shareholder wealth.
Inspiration from MicroStrategy’s Bitcoin Strategy
The proposal cites MicroStrategy as a model of success for companies adopting a Bitcoin-focused treasury strategy.
- MicroStrategy’s Results: The company currently holds over $40 billion in Bitcoin, generating approximately $17 billion in unrealized profits.
- Market Impact: MicroStrategy’s stock has outperformed Amazon’s by an impressive 537% since adopting its Bitcoin strategy, according to the proposal.
This strategy has inspired other corporations and organizations to follow suit:
- Marathon Digital Holdings (MARA): The mining firm completed a $1 billion convertible note offering in November 2024, purchasing 6,474 BTC for its treasury.
- Genius Group: The AI company began converting its treasury assets to Bitcoin in November 2024, acquiring 110 BTC at an average price of $90,932 each.
Amazon’s Next Steps
The National Center for Public Policy Research believes that Amazon’s adoption of a Bitcoin treasury strategy could protect its assets from inflation and enhance shareholder value. While Amazon has yet to comment, the increasing adoption of Bitcoin by prominent companies may make such proposals harder to ignore.
