Amazon shareholders, the National Center for Public Policy Research propose that Amazon allocate 5% of its assets to Bitcoin to hedge against inflation.
On December 9, the National Center for Public Policy Research (NCPPR), a free-market research organization in Washington D.C., submitted a shareholder proposal to Amazon, urging the e-commerce giant to consider establishing a Bitcoin reserve fund at its April 2025 shareholder meeting. This proposal comes amid concerns over rising inflation and the success of other companies in implementing similar strategies.
NCPPR argues that the current Consumer Price Index (CPI) of 4.95% does not accurately reflect the true devaluation of currency, and the actual inflation rate could be twice as high. This threatens the $88 billion in cash and cash equivalents held by Amazon.
The proposal suggests that investing in Bit would be an effective risk-mitigation measure, protecting shareholder value. NCPPR cites Bitcoin's impressive performance, with a 131% increase year-to-date as of December 6, outperforming the medium return of corporate bonds at 126%. Over 5 years, Bit has grown 1,246%, higher than the medium corporate bond return of 1,242%.
Bit Reserve Fund: A New Trend?
NCPPR proposes that Amazon allocate at least 5% of its assets to Bit, following the successful strategy of MicroStrategy. This software company, under the leadership of Michael Saylor, has pioneered the inclusion of Bit in its reserve fund and has attracted the attention of many businesses and pension funds. According to the MicroStrategy Tracker, the value of Bit held by the company has exceeded $40 billion, generating a profit of around $17 billion.
The success of MicroStrategy has had a ripple effect. Marathon Digital (MARA), a cryptocurrency mining company, issued $1 billion in convertible bonds with a 0% interest rate in November 2024 to purchase an additional 6,474 Bit for its reserve fund. In the same month, Genius Group, an artificial intelligence company, also announced the conversion of assets in its reserve fund to Bit, starting with the purchase of 110 Bit at an average price of $90,932/BTC.
