Bitcoin could become part of Amazon’s treasury strategy as shareholders of the online retail giant push to adopt the cryptocurrency among their assets.

If Amazon embraces digital assets, it will join other business titans exploring incorporating Bitcoin into their asset portfolios.

Bitcoin as a financial reserve option

Amazon shareholders have urged the online retailer to evaluate its options adding Bitcoin to your balancesaying that the original cryptocurrency could augment the value of investors in the long run as it is one way to protect it against inflation.

A U.S.-based advisory panel has told Amazon to evaluate the prospect of using part of its financial reserve to hold Bitcoin to augment shareholder value and fight inflation.

In line with the recommendation of the National Center for Public Policy Research (NCPPR), the company’s shareholders are asking the company’s board to investigate whether including cryptocurrencies in the online retailer’s treasury is in the best long-term interests of shareholders.

STORY: SHAREHOLDERS ASKED TO BUY AMAZON FOR $2.3 TRILLION #BITCOIN

BTC IS IN THE BEST “LONG-TERM SHAREHOLDERS’ INTEREST” 🚀 pic.twitter.com/Nj2wCNrVUn

— Bitcoin Historian (@pete_rizzo_) December 9, 2024

NCPPR presented a shareholder proposal to Amazon to consider a crypto strategy at the company’s 2025 annual shareholder meeting.

A US think tank has suggested that Amazon should assess the benefits of owning part of Bitcoin, encouraging the company to allocate up to 5% of its $585 billion in assets to the cryptocurrency.

“While Bitcoin is currently a volatile asset – as Amazon stock has been at times throughout its history – corporations have a responsibility to maximize shareholder value in both the long and short term,” NCPRR said in the document.

The researchers said that including some Bitcoins could diversify a company’s balance sheet, solving this problem without causing too much volatility.

Fighting inflation

NCPRR said the U.S. inflation rate is rising, adding that cash and bonds are no longer the best way to protect Amazon’s money.

The US think tank reported that the country’s average inflation rate has been 4.95% over the past four years, and it even rose to 9.1% in June 2022.

He added that the real rate of inflation is much higher, stating that several studies have shown that it is at times almost twice as high as the Consumer Price Index.

“Amazon should – and perhaps has a fiduciary duty – to consider adding to its treasury assets that are worth more than bonds, even if those assets are more volatile in the short term,” NCPPR noted.

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Bitcoin Good Option

NCPPR believes Amazon could preserve billions of dollars of shareholder value by simply holding Bitcoin.

The researchers explained that alpha cryptocurrencies are rising in value unlike cash and bonds, which are worth less than the “true inflation rate,” adding that digital assets have increased in value by 130% this year, outperforming bonds.

Data has shown that over the last five years, Bitcoin’s value has skyrocketed to a phenomenal 1,200%.

The company’s shareholders said that by holding Bitcoin, Amazon is protecting its profits from inflation and potentially generating better returns in the future.

In the post, former Binance executive Changpeng Zhao supports this proposal, offering a plain solution on how Amazon can build its Bitcoin holdings by adding a cryptocurrency payment option on its platform.

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