Global Think Tank Proposes Bitcoin Reserve for Amazon

A global think tank, the National Center for Public Policy Research, has proposed a bold recommendation urging Amazon to consider integrating Bitcoin into its strategic reserve by next year. This suggestion follows a similar initiative directed towards Microsoft by Michael Saylor, Executive Chairman of MicroStrategy, who has been vocal about Bitcoin’s potential to serve as a hedge against inflation and as a powerful asset on corporate balance sheets. Both proposals reflect a larger trend in the corporate world, where influential voices are now encouraging tech giants to consider adding Bitcoin to their reserves as a means of navigating inflationary pressures and volatility in the traditional financial markets.

The National Center for Public Policy Research’s proposal for Amazon revolves around the company’s current treasury, which stands at a staggering $88 billion. This reserve consists mainly of cash and cash equivalents, including U.S. government and corporate bonds. However, the think tank argues that these traditional investments are no longer as effective as they once were, particularly given the rising inflation rates. In fact, the performance of bonds has failed to outpace inflation, leaving corporations at risk of their financial assets losing value over time. Bitcoin, with its historical performance and increasing demand, has outshone traditional investments like bonds in recent years. The think tank believes that by allocating a portion of its treasury into Bitcoin, Amazon would not only protect its shareholder value but could also capitalize on the digital currency’s potential for long-term appreciation.

Amazon, as one of the world’s largest companies, has a significant influence on the markets and the broader economy. The National Center’s proposal suggests that the company should adopt Bitcoin into its strategic reserve by Amazon’s next annual meeting in April 2025. The think tank points out that Bitcoin has experienced impressive gains, particularly in recent months, with the asset rising by 131% in the past year. This surge in Bitcoin’s value significantly outpaces traditional investments, including corporate bonds. As the U.S. inflation rate peaked at 9.1% in June 2022, traditional bonds simply could not offer sufficient returns to combat the erosion of value caused by inflation. In contrast, Bitcoin has consistently outperformed many other assets and provides a unique opportunity for companies to diversify and strengthen their reserves.

The example of MicroStrategy, which began adding Bitcoin to its balance sheet in 2020, serves as a powerful case study for Amazon. Since making this decision, MicroStrategy’s stock has surged by a staggering 594%, while Amazon’s stock has only risen by 57% over the same period. This dramatic difference in performance highlights the potential upside for companies that embrace Bitcoin as part of their financial strategy. Additionally, the success of Bitcoin investment has attracted the attention of other major players in the financial industry, including BlackRock and Fidelity, both of which have launched Bitcoin exchange-traded funds (ETFs) this year, further solidifying the cryptocurrency’s growing legitimacy and appeal.

Given these factors, the National Center for Public Policy Research suggests that Amazon should take a bold step forward by diversifying its balance sheet and allocating at least 5% of its assets into Bitcoin. The think tank argues that by doing so, Amazon could better position itself for the future, safeguarding its financial stability and ensuring that it remains ahead of the curve in terms of technological and financial innovation. As more companies in the tech sector begin to integrate digital assets into their portfolios, Amazon’s decision to invest in Bitcoin would not only protect its shareholder value in the face of inflation but would also position the company as a leader in embracing the future of digital finance. The think tank’s proposal emphasizes that this move is not just a way to protect value—it is also an opportunity to take part in a rapidly evolving financial ecosystem that could define the next era of corporate growth and innovation.

In conclusion, the National Center for Public Policy Research’s recommendation to Amazon is part of a broader movement toward incorporating Bitcoin and other digital assets into corporate financial strategies. As traditional financial markets face increased volatility and inflationary pressures, Bitcoin offers a compelling alternative for companies seeking to safeguard their financial future. By following the lead of MicroStrategy and other forward-thinking companies, Amazon has the opportunity to strengthen its balance sheet, enhance its long-term growth prospects, and better serve its shareholders in an increasingly digital and decentralized financial world.