A group of shareholders is pushing Amazon to invest in Bitcoin, suggesting it could be a smart move to protect against inflation and boost long-term value.
Shareholders Want Bitcoin in Amazon’s Treasury
A US think tank, the National Center for Public Policy Research (NCPPR), formally proposed that Amazon add Bitcoin to its financial reserves. They argue that holding Bitcoin could significantly benefit shareholders in the long run. The proposal suggests allocating 5% of Amazon’s massive $585 billion in assets to Bitcoin.
This isn’t just a random idea; the NCPPR believes that holding Bitcoin would be a better way to protect Amazon’s money from inflation than traditional methods like cash and bonds. They point to recent high inflation rates in the US, arguing that the actual inflation is even higher than official numbers suggest.
Why Bitcoin? Fighting Inflation and Boosting Returns
The NCPPR’s argument centers on Bitcoin’s potential to outperform traditional assets in an inflationary environment. They highlight Bitcoin’s impressive growth – a 130% increase this year and a staggering 1200% increase over the last five years – contrasting this with the declining real value of cash and bonds due to inflation. Essentially, they believe Bitcoin offers a hedge against inflation and the potential for significant returns.
Even Binance CEO, Changpeng Zhao, threw his support behind the idea, suggesting that Amazon could easily acquire Bitcoin by simply adding a Bitcoin payment option to its platform.
A Risky, But Potentially Rewarding, Bet?
While Bitcoin is known for its volatility, the NCPPR argues that the long-term benefits of holding Bitcoin outweigh the short-term risks for a company like Amazon. They believe that maximizing shareholder value over the long term requires considering more diverse and potentially higher-growth assets. The proposal will be discussed at Amazon’s 2025 annual shareholder meeting.
