NCPPR Proposes Amazon to Allocate $4.4 Billion to Bitcoin

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As a seasoned analyst with over two decades of experience in the financial markets, I have witnessed the evolution of various asset classes and their roles in portfolio management. The recent proposal by the National Center for Public Policy Research (NCPPR) to tech giants Amazon and Microsoft to invest in Bitcoin is an intriguing development that warrants closer inspection.

The National Center for Public Policy Research, a free-market advocacy group based in Washington DC, has recently made a suggestion to tech titan Amazon on behalf of its investors. They proposed that Amazon should allocate at least 5% of its $88 billion in liquid assets.

In a recent statement, NCPPR proposed that Amazon should consider adding Bitcoin to its corporate treasury as an inflation hedge. Tim Kotzman outlined the proposal, emphasizing Bitcoin’s advantages over traditional assets such as corporate bonds, citing examples of companies like Tesla and MicroStrategy who have already invested in Bitcoin. In the letter, NCPPR highlighted that having BTC on the balance sheet could potentially benefit Amazon. The proposed Bitcoin is currently trading at approximately $98,753, with a 24-hour volatility of 0.6%, a market cap of $1.95 trillion, and a 24-hour volume of $86.32 billion.

In the past year, MicroStrategy’s stock has surpassed Amazon’s by an impressive 537%. This isn’t unique to MicroStrategy; more companies like Tesla and Block are now investing in Bitcoin, making it a common practice among institutions. To cater to this trend, major players like BlackRock and Fidelity, who are significant shareholders of Amazon, provide Bitcoin ETFs to their clients. Moreover, there’s speculation that the US government might create a strategic reserve for Bitcoin as early as 2025.

As a crypto investor, I’ve taken note of the criticism levied by the “thin tank” regarding the Consumer Price Index (CPI), now standing at 4.95%. They deemed it a less-than-ideal gauge for the actual erosion of our currency’s value, going so far as to say that the true inflation could be twice the reported figure.

The letter suggested that the value of Amazon’s $88 billion in cash and short-term equivalents could be greatly reduced. To protect shareholder value, it proposed Bitcoin (BTC) as a prudent strategy to counteract this potential risk.

Amazon, Microsoft to Make Bitcoin Part of Treasury?

Amazon.com Inc (NASDAQ: AMZN), a leading tech company, hasn’t voiced its stance or reacted to the NCPPR proposal as of now. Nevertheless, Amazon has demonstrated an interest in blockchain technology in the past, primarily focusing on its potential applications within supply chain management.

The proposal by the NCPPR contributes to a wider initiative aimed at promoting the use of Bitcoin. Back in October, this organization also recommended Microsoft to ponder over Bitcoin as an investment option.

On the other hand, Microsoft advises its stockholders to oppose the suggestion, stating that the corporation already reviews a diverse array of potential investments, including Bitcoin. The NCPPR issued a warning, suggesting that if Microsoft declines Bitcoin investments and the cryptocurrency’s worth increases substantially, the company may encounter shareholder lawsuits. Voting on this proposal by Microsoft shareholders is set for December 10.

Following NCPPR’s recent submission of their shareholder proposal, Amazon’s board of directors will assess it to decide if they should add it to the company’s proxy statement for the forthcoming annual general meeting in 2025. If accepted for inclusion, the proposal will then be put up for a vote by shareholders during this meeting.

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2024-12-09 14:06