Corporate treasuries are at a turning point in the face of global economic instability. Indeed, the National Center for Public Policy Research (NCPPR), an influential think tank based in Washington DC, submitted an innovative proposal to Amazon. The organization is calling on the e-commerce giant to invest part of its $88 billion in reserves in bitcoin, a crypto whose value has exploded 1,246% in five years. By highlighting the spectacular performance of bitcoin and its potential as a hedge against monetary erosion, this initiative aims to protect the value of Amazon's assets in a context of high inflation. While this proposal will be discussed at the general meeting in April 2025, it raises major issues on the evolution of the financial strategies of large companies and on the growing role of cryptos in the global economy.
A plea for bitcoin cash
The National Center for Public Policy Research has drawn attention to the growing economic challenges facing Amazon. According to the think tank, the official inflation rate, currently estimated at 4.95%, does not reflect reality. Actual currency depreciation could be twice as high, leading to significant erosion in the value of the $88 billion in liquid assets held by Amazon. Thus, “bitcoin outperformed corporate bonds with growth of 131% in one year and 1,246% over five years”, precise the letter published on the social network X (formerly Twitter) on December 8, 2024 by Tim Kotzman, CEO and founder of Jubilee Royalty. This argument, based on encrypted data, positions bitcoin as a credible option for diversifying and protecting company assets.
To reinforce this proposition, the NCPPR cited the major example of MicroStrategy. The company, a pioneer in the adoption of bitcoin as a treasury asset, saw its crypto reserves reach a staggering value of $40 billion, generating around $17 billion in profits. Inspired by this success, the think tank suggested that Amazon could, in turn, devote 5% of its assets to bitcoin. This strategy would make it possible to counter monetary erosion, but also to position Amazon as a key player in the digital economy, and which would adopt a proactive approach in a constantly evolving financial environment.
The economic and strategic implications of such adoption
The NCPPR initiative goes beyond purely financial considerations and is part of a global trend of growing institutional adoption of bitcoin. This dynamic is exemplified by companies such as Marathon Digital and Genius Group, which have followed MicroStrategy's lead. In November, Marathon Digital raised $1 billion through an interest-free convertible bond issue, a sum used to acquire 6,474 bitcoins. For its part, Genius Group began its bitcoin treasury strategy with the purchase of 110 BTC, made at an average price of $90,932 per unit. These initiatives reflect a desire shared by several economic players to diversify their reserves in the face of global economic uncertainty.
However, adopting such a strategy carries notable risks. Bitcoin, although it has shown exceptional performance over the long term, remains an extremely volatile crypto. For a company of Amazon's scale, whose financial stability is a pillar of its overall operations, this instability could lead to significant losses. Despite these uncertainties, the example of MicroStrategy demonstrates that a well-thought-out and calibrated approach can transform this volatility into opportunity. Indeed, the company protected its reserves, but it also strengthened its competitive advantage. Thus, the decision that Amazon makes at its general meeting in April 2025 could have a lasting influence on the way in which large companies manage their cash flow in today's digital economy.
Through the integration of long-term strategic perspectives and concrete examples of success, this proposal could mark a decisive change in the institutional adoption of cryptos by multinationals.
The NCPPR proposal raises fundamental questions about the future of large companies' financial strategies. Amazon could choose to become a pioneer by integrating bitcoin into its treasury, and thus pave the way for increased institutional adoption of cryptos. However, this bold step goes against considerations of prudence and stability, essential for a company of this scale. Such a debate sheds light on the major challenge facing multinationals: finding a balance between financial innovation and rigorous risk management. The decision Amazon makes in 2025 could redefine its own practices, but also influence the digital economy on a global scale.
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