Amazon may invest in Bitcoin

The NCPPR has proposed that the board of directors of Amazon consider converting 5% of its assets into the first cryptocurrency to improve the financial stability of shareholder equity. The initiative will be discussed at the shareholders' meeting in 2025.

As of September 30, 2024, the corporation held $88 billion in cash and securities, including U.S. and other countries' bonds. However, the NCPPR argues that the returns on these assets do not offset inflation, which could threaten capital protection and slow down the company’s growth.

Success of cryptocurrency investments

The NCPPR cites MicroStrategy as an example, whose stock outperformed Amazon by 537% in 2023. This was made possible due to investments in digital gold, which significantly increased the company’s capitalization. MicroStrategy's success raises questions about the viability of traditional investment strategies amid the growing appeal of Bitcoin.

Role of institutional investors

An important element of the discussion is the recent launch of a BTC ETF by giants such as BlackRock and Fidelity, which are among Amazon’s largest institutional investors. This will strengthen the role of cryptocurrency as a protective asset in institutional portfolios.

Prospects in corporate assets

Against the backdrop of economic changes and growing interest in cryptocurrencies, the NCPPR’s proposal could become significant for corporate strategies. Michael Saylor of MicroStrategy noted that BTC could increase a company’s capitalization by $5 trillion. Currently, blockchain assets are held by only 0.01% of public companies, but this figure is rapidly growing, and many are revisiting their strategies toward digital assets.