The National Center for Public Policy Research Proposes Bitcoin Integration into Amazon’s Treasury

Highlights:

• The NCPPR has proposed Bitcoin as an option for Amazon’s treasury inclusion.
• Bitcoin’s treasury integration will help Amazon circumvent the inflation rate hike.
• The think tank group spotlighted MicroStrategy’s investment model as a guide for Amazon.

According to a document shared by the renowned X podcaster Tim Kozman, the National Center for Public Policy Research (NCPPR) recently submitted a proposal that suggests Amazon integrate Bitcoin (BTC) into its treasury. In the document, the NCPPR stated that it is presenting the investment strategy for consideration during the Amazon.com, Inc. shareholders meeting in 2025.

The National Center for Public Policy Research has submitted the attached shareholder proposal to https://t.co/Lve7Kg1nVI, Inc. for consideration at the 2025 annual shareholder meeting.

Shareholders request that the Board assess adding #Bitcoin to the Company’s Treasury pic.twitter.com/lsgHC0aGrt

— Tim Kotzman (@TimKotzman) December 8, 2024

Founded in 1982, the NCPPR is a United States-based think tank group. Over the years, it has devoted quality time to providing free, astute solutions to rapidly evolving public policy problems. Meanwhile, the latest development comes amid BTC’s scintillating market actions that saw it clinch the $100,000 price mark for the first time.

Additionally, the suggestion comes a few days after MicroStrategy’s co-founder, Michael Saylor, proposed a similar investment model for Microsoft. In the co-founder’s words, Bitcoin could bolster Microsoft’s value by $5 trillion and $584 per share in a few years.

Maximizing Share Holders’ Value and Storing Profits

The NCPPR report centered on several aspects of Amazon’s investment strategies, with a focus on improvement and the best outcomes for shareholders. Per the publicized statement, a fundamental aspect of measuring a company’s value entails evaluating how well such a firm has stored its profits over the years.

Based on its assessment, the think tank group believes that establishing a suitable means of storing profits would help the American-based tech firm increase shareholders’ value. Moreover, the NCPPR added that economic instabilities, especially inflation, imply that measuring only profits no longer qualifies as a valid means of estimating a company’s success.

Inflation Remains a Significant Concern for Amazon

In the report, the think tank group criticized Amazon’s pattern of safekeeping safekeeping assets. The research group cited how unfavorable inflationary impacts have resulted in the depreciation of Amazon’s held valuables. Per the NCPPR, the average inflation rate in the United States was 4.95%, which peaked at 9.1% in June 2022, according to the Consumer Price Index (CPI).

The above data represents a significantly poor inflationary measure, considering that some studies estimate the inflation rate as double of CPI’s value. Meanwhile, Amazon boasts a significant store of wealth. The NCPPR noted that as of September 30, 2024, the tech giant boasts roughly $585 billion in total assets. Notedly, the $88 billion accounted for cash and its equivalents. It also includes market securities like U.S. government bonds, foreign government bonds, and other corporate bonds.

The Role of Bitcoin in Improving Amazon’s Outlook

For stability, the NCPPR noted that a company’s assets must appreciate at rates equal to the inflationary hike. “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 document stated.

Furthermore, the research compared Bitcoin’s remarkable run to Amazon’s conventional bonds. According to the report, BTC’s price has skyrocketed by 131% in a year, surpassing corporate bonds by about 126%. Extending the timeframe, the NCPPR noted that the past five years saw BTC appreciate by about 1,246%, outpacing corporate bonds by roughly 1,242%.

MicroStrategy Remains the Standard

According to the think tank group, MicroStrategy’s stock outperformed Amazon’s by 537% in the previous year. The massive appreciation stemmed from Bitcoin’s effect. Moreover, aside from MicroStrategy, the report spotlighted other entities that included Bitcoin in their reserve. They include Tesla and Block.

Apple, Google, Amazon, Microsoft and these 10 companies hold $811 BILLION in cash. ZERO #Bitcoin

Every year cash loses purchasing power.

They should buy a little ₿itcoin.

"…in case it catches on". 😉 pic.twitter.com/f6UfpAom1B

— Bitcoin Archive (@BTC_Archive) December 8, 2024

In addition, Amazon’s leading institutional shareholders, BlackRock and Fidelity, offer clients Bitcoin Exchange Traded Funds (ETFs). “Diversifying the balance sheet by including some Bitcoin solves this problem without taking on too much volatility. At a minimum, Amazon should evaluate the benefits of holding some, even just 5% of its assets in Bitcoin,” the NCPPR added.