Amazon Should Buy Bitcoin, Shareholders Say
Amazon shareholders are pushing for the e-commerce giant to invest at least 5% of its assets in Bitcoin, according to a new proposal submitted by the National Center for Public Policy Research (NCPPR).
The proposal comes as Bitcoin recently touched the $100,000 mark, with shareholders arguing that Amazon needs to protect its $585 billion in assets from inflation and low bond yields. As of September 2024, Amazon holds $88 billion in cash, cash equivalents, and bonds.
Shareholders point to MicroStrategy's success story, noting that its stock has outperformed Amazon by 537% in the past year after adding Bitcoin to its balance sheet. Other major corporations like Tesla and Block have already embraced Bitcoin as a treasury asset.
The timing appears strategic, as some of Amazon's largest institutional shareholders - BlackRock and Fidelity - have recently launched Bitcoin ETFs, indicating growing institutional acceptance of the cryptocurrency.
"Since cash is consistently being debased and bond yields are lower than the true inflation rate, Amazon isn't adequately protecting billions of dollars of shareholder value," the NCPPR stated in their proposal.
The proposal highlights Bitcoin's 131% price increase over the past year, compared to corporate bonds' modest 5% gain. While acknowledging Bitcoin's volatility, shareholders argue that even a small allocation could provide significant benefits.
Amazon's board will decide whether to include this proposal in the company's proxy statement at the annual shareholders meeting in April 2025. The push for Bitcoin investment comes as Microsoft shareholders prepare for a similar vote on cryptocurrency investment.
The proposal represents a broader shift in corporate attitudes toward Bitcoin, as more institutions view it as a legitimate strategic asset. Some speculate that even the U.S. government might establish a Bitcoin strategic reserve by 2025.