According to analysts, the first cryptocurrency will allow the corporation to protect shareholder value in a high-inflation environment

National Center for Public Policy Research suggests Amazon to invest in bitcoin

09.12.2024 - 12:40

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4 min

What’s new? The National Center for Public Policy Research (NCPPR) in Washington, D.C. has proposed that e-commerce and cloud computing giant Amazon discuss the introduction of bitcoin into corporate reserves at a shareholder meeting in April 2025. Analysts note that the BTC exchange rate has added 131% year-to-date, outperforming corporate bonds by an average of 126% and outperforming securities by 1242% over five years.

Material by Cointelegraph

What else is known? According to analysts, the Consumer Price Index (CPI) is currently at 4,95%, which is a “remarkably poor measure” of currency depreciation. According to their suggestion, the real inflation rate could be double the reported CPI.

The letter states that such high inflation will contribute to Amazon’s $88 billion in cash and short-term financial investments. The NCPPR believes that bitcoin should be used to hedge inflation in the current situation.

The authors suggested that Amazon should invest at least 5% of its assets in bitcoin to protect its value. They cited the success of analytics software company MicroStrategy in this direction.

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MicroStrategy, led by Michael Saylor, began investing in bitcoin to hedge inflation in December 2020 and has since accumulated 402 100 coins, making it the largest holder of the asset on its own balance sheet among public companies.

Its unrealized gains from investing in the first cryptocurrency at the current exchange rate total $16,1 billion, and MSTR shares are up 1282% in four years. They hit a high of $494,6 in November before correcting to $395,01.

MicroStrategy’s example has been followed by other companies including Metaplanet, Selmer Scientific, and Genius Group, Saylor himself has also begun to promote bitcoin strategy among his peers in the United States. In particular, he suggested that Microsoft Corporation and Warren Buffett’s Berkshire Hathaway holding company invest in BTC.

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MicroStrategy has held several bond offerings this year to increase its investment in the asset. Its example was followed by leading miners Marathon Digital and Hut 8: in this way they raised $1 billion and $500 million, respectively, to create strategic bitcoin reserves.

The creation of a bitcoin reserve is also being discussed at the state level. Back in July, Republican Senator Cynthia Lummis proposed to reduce the national debt by purchasing 1 million bitcoins over five years. During her election campaign, this initiative was supported by her party colleague Donald Trump. After his victory, the issue of investing budget funds in bitcoin began to be discussed in other countries. Similar bills are being put forward at the level of individual states.

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