The National Public Policy Center suggests Amazon include Bitcoin in its corporate reserve
Date: 2024-12-09 Author: Gabriel Deangelo Categories: BUSINESS
In its letter, the Center noted that traditional indicators such as the Consumer Price Index (CPI) do not reflect the real level of inflation. In their opinion, real inflation can be twice as high as official indicators, which leads to devaluation of capital. In particular, it was noted that Amazon's $88 billion in cash and short-term investments are at significant risk due to currency devaluation. To protect shareholder capital, the Center suggested using Bitcoin as a hedging instrument.
The letter states:
"As of December 6, 2024, the price of Bitcoin has increased by 131% in a year, outperforming corporate bond yields by an average of 126%. Over the past five years, the value of Bitcoin has increased by 1,246%, outperforming corporate bonds by 1,242%. "
The authors of the letter also cited the example of MicroStrategy, whose shares rose by 537% thanks to the implementation of a Bitcoin-based corporate reserve strategy. Based on this, the National Public Policy Center recommended that Amazon allocate at least 5% of its assets to Bitcoin to protect their value and strengthen financial stability.
