Can you imagine the global e-commerce giant Amazon's 'small treasury' filled not with dollars, but with bitcoins?

The National Center for Public Policy Research (NCPPR) has proposed a 'novel' idea: Amazon should use bitcoin to hedge against inflation risk.

This proposal will be reviewed at the shareholders' meeting in April 2025, and it has already made many investors perk up.

Why bitcoin?

The think tank's reasoning is quite 'realistic': traditional inflation measurement indicators, such as the Consumer Price Index (CPI), fundamentally underestimate the true situation of currency depreciation. They believe the actual inflation rate could be twice that of the official announcement! This is undoubtedly a huge 'financial threat' to Amazon's $88 billion cash holdings.

Bitcoin has just become a kind of 'hard currency'; the data shows:

  • Over the past year: bitcoin prices rose by 131%, exceeding the returns of corporate bonds by 126%.

  • Over the past five years: bitcoin increased by 1,246%, leaving bonds in a 'universe' distance.

The think tank even boldly suggested that Amazon should convert at least 5% of its assets into bitcoin. This is equivalent to about $4.4 billion flowing into the bitcoin market, which would certainly 'make the cryptocurrency world explode', right?

Using MicroStrategy to speak up

If you are still a bit confused, the think tank provided a ready-made example: bitcoin enthusiast MicroStrategy.

This company not only went 'ALL IN' on bitcoin but also used this strategy to outperform Amazon's stock by 537%.

Currently, their bitcoin reserves are worth over $40 billion, with net profits soaring to $17 billion.

Who else is more 'high on it'?

  • Mining company MARA issued $1 billion in convertible bonds in November 2024, then bought 6,474 bitcoins.

  • Artificial intelligence company Genius Group has also been active, using funds from the treasury to purchase 110 bitcoins at a price of $90,932 each.

Will Amazon follow suit?

It’s hard to say. Companies like Amazon are generally conservative; whether they would suddenly 'take a risk' and convert some of their assets into the 'volatile king' bitcoin remains a mystery. But what is certain is that this proposal has already created new expectations in the capital market regarding 'corporate asset allocation.'