- NCPPR suggests that Amazon dedicate 5% of its assets to Bitcoin to tackle inflation.
- Bitcoin’s superior performance offers a strategic opportunity for long-term value growth.
As a seasoned financial analyst with over two decades of experience under my belt, I find the proposal by the National Center for Public Policy Research to be intriguing and potentially groundbreaking. Having witnessed the meteoric rise of Bitcoin and its ability to outperform traditional assets, I can see the strategic opportunity it presents for long-term value growth.
The National Center for Public Policy Research has suggested that Amazon consider investing 5% of its total $585 billion assets in Bitcoin. This idea, which was presented at the 2025 annual shareholders’ meeting, demonstrates the potential benefits Bitcoin can provide, such as combating inflation and increasing shareholder value.
Regardless of Bitcoin’s fluctuations, it is crucial for the company to prioritize long-term investor benefits. The suggestion put forth is that by venturing into Bitcoin, we can secure protection against inflation without incurring excessive risk.
In their discussion about the shortcomings of conventional savings assets like cash, government bonds, and corporate stocks, the NCPPR pointed out that these assets struggle to match inflation rates which are currently around 5% per year. As a result, they argue that Bitcoin, with its robust growth potential, could offer protection against inflation erosion and potentially boost long-term earnings.
A Bold Proposal on Introducing Bitcoin in Amazon
These companies, MicroStrategy and Tesla, continue to outperform in traditional asset markets, with their combined value increasing by over 131% compared to last year and an astonishing 1,200% over the past five years. This financial success has opened up enormous profit-making prospects for them, as they have incorporated Bitcoin into their investment strategies. For example, MicroStrategy’s stock skyrocketed by 537% compared to Amazon’s in 2024, demonstrating a compelling argument for including Bitcoin as part of the investment portfolio.
The NCPPR points out that the acceptance of Bitcoin within institutions is growing rapidly, and prominent companies like BlackRock and Fidelity are now providing Bitcoin Exchange-Traded Funds (ETFs). According to the NCPPR, a modest 5% allocation of Bitcoin could enhance Amazon’s financial strategy by diversifying its treasury operations while shielding its balance sheet from inflation.
The report acknowledges Bitcoin’s inherent volatility, yet it suggests that Amazon, in particular, has the resilience to handle market turbulence. It’s worth noting that Amazon proposes a strategic move in the plan that aligns with its innovative ethos and holds significant promise for revolutionizing corporate finance.
On December 5th, Bitcoin reached a never-before-seen peak of more than 100k, and as of now, it’s being traded at approximately $98,296. In just the past day, its value has increased by an impressive 3.10%. With this surge, its market capitalization is staggeringly high at around $1.94 trillion, and the trading volume in the last 24 hours exceeded $62.63 billion.
Currently, if a recommendation arises, the decision regarding cryptocurrency could potentially move forward to Amazon’s board and shareholders. If adopted, this might be one of those transformative actions that other multinational corporations might eventually consider transitioning their treasury to favor the use of cryptocurrencies.
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2024-12-10 12:26