Amazon's Big Move: Will They Invest In Bitcoin Reserves ?

Corporate treasuries are at a decisive 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 D.C., has submitted an innovative proposal to Amazon. The organization calls on the e-commerce giant to invest a portion of its $88 billion in reserves into bitcoin, a cryptocurrency whose value has skyrocketed by 1,246 % in five years. By highlighting the spectacular performance of bitcoin and its potential as a bulwark against monetary erosion, this initiative aims to protect the value of Amazon’s assets in a context of high inflation. As this proposal will be discussed at the general assembly in April 2025, it raises major stakes on the evolution of the financial strategies of large companies and the growing role of cryptocurrencies in the global economy.

A Case for a Bitcoin Treasury

The National Center for Public Policy Research has drawn attention to the growing economic challenges that Amazon must face. According to the think tank, the official inflation rate, currently estimated at 4.95 %, does not reflect reality. The real depreciation of currencies could be twice as high, leading to significant erosion of the value of the $88 billion in liquid assets held by Amazon. Thus, “bitcoin has outperformed corporate bonds with a growth of 131 % in one year and 1,246 % over five years,” notes 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 quantitative data, positions bitcoin as a credible option for diversifying and protecting the company’s assets.

To reinforce this proposal, the NCPPR cited the major example of MicroStrategy. The company, a pioneer in adopting bitcoin as a treasury asset, has seen its crypto reserves reach a staggering value of $40 billion, generating approximately $17 billion in profits. Inspired by this success, the think tank suggested that Amazon could, in turn, allocate 5 % of its assets to bitcoin. This strategy would counter monetary erosion, but also position Amazon as a key player in the digital economy, adopting a proactive approach in a constantly evolving financial environment.

The Economic and Strategic Implications of Such Adoption

The NCPPR’s initiative goes beyond purely financial considerations and fits into a global trend of increasing institutional adoption of bitcoin. This dynamic is illustrated by companies such as Marathon Digital and Genius Group, which have followed in the footsteps of MicroStrategy. In November, Marathon Digital raised $1 billion through an issue of interest-free convertible bonds, a sum used to acquire 6,474 bitcoins. For its part, Genius Group began its treasury strategy in bitcoin with the purchase of 110 BTC, made at an average price of $90,932 per unit. These initiatives reflect a shared willingness among several economic actors to diversify their reserves in the face of global economic uncertainty.

However, adopting such a strategy carries notable risks. Bitcoin, while it has shown exceptional long-term performance, remains an extremely volatile cryptocurrency. For a company of Amazon’s scale, for which financial stability is a pillar of its global 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. In fact, the company has protected its reserves, but it has also strengthened its competitive advantage. Thus, the decision Amazon will make at its general assembly in April 2025 could sustainably influence how large companies manage their treasuries in today’s digital economy.

By integrating long-term strategic perspectives and concrete examples of success, this proposal could mark a decisive change in the institutional adoption of cryptocurrencies by multinationals.

The NCPPR’s proposal raises fundamental questions about the future of financial strategies for large companies. Amazon could choose to become a pioneer by integrating bitcoin into its treasury, thus paving the way for increased institutional adoption of cryptocurrencies. However, this bold move stands in contrast to considerations of caution and stability, which are essential for a company of this size. Such a debate sheds light on the major challenge faced by 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.