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Bitcoin-Backed Treasury for Amazon? Think Tank Cites MicroStrategy’s $40B Gain in Bold Proposal

Sun, 08 Dec 2024, 22:28 pm UTC

Amazon faces a bold Bitcoin treasury proposal, inspired by MicroStrategy’s $40B BTC success and inflation challenges.

A Washington-based think tank has proposed that Amazon allocate 5% of its treasury to Bitcoin. Drawing from MicroStrategy’s $40 billion success, the proposal highlights BTC’s inflation-proof performance and potential to shield Amazon’s cash reserves from economic risks.

Think Tank Pushes Bitcoin Strategy for Amazon’s Treasury

At the April 2025 shareholder meeting, Amazon.com Inc. will be asked to examine a Bitcoin corporate treasury strategy, according to a shareholder proposal sent by the National Center for Public Policy Research, a free market think tank based in Washington DC.

A "Remarkably poor measure" of actual currency debasement, the think tank's letter claims, since it is based on the Consumer Price Index (CPI), which now places inflation at 4.95%. According to the authors, the actual rate of inflation can be twice the official Consumer Price Index (CPI) number.

According to the letter, this would significantly reduce Amazon's $88 billion in cash and short-term cash equivalents, so the company should employ Bitcoin as a hedge to protect shareholder value.

MicroStrategy's Bitcoin Success Inspires Treasury Strategy

"As of December 6, 2024, the price of Bitcoin increased by 131% over the previous year, outperforming corporate bonds by 126% on average. Over the past five years, the price of Bitcoin increased by 1,246%, outperforming corporate bonds by 1,242% on average."

In their last recommendation, the authors highlighted the effectiveness of MicroStrategy's Bitcoin treasury strategy and suggested that Amazon invest at least 5% of its assets in Bitcoin to safeguard its treasury assets.

Companies and pension funds are starting to use the corporate Bitcoin treasury strategy, which was popularized by MicroStrategy and its founder Michael Saylor.

MARA and Genius Group Follow Bitcoin Treasury Strategy

The current value of MicroStrategy's Bitcoin holdings exceeds $40 billion, resulting in a profit of almost $17 billion, as reported by the MicroStrategy Tracker.

Following in MicroStrategy's footsteps, mining business MARA (formerly Marathon Digital) conducted a $1 billion convertible note issuance with zero percent interest in November 2024. With these monies, MARA was able to stock up on 6,474 Bitcoin for its company vault, Cointelegraph points out.

In November, Genius Group, an AI firm, also revealed that it had converted its treasury assets into Bitcoin. Buying 110 BTC at an average price of about $90,932 per coin was the first step in the company's BTC treasury accrual.

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Great article. Requesting a follow-up. Excellent analysis.

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Great article. Requesting a follow-up. Excellent analysis.
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