A group of Amazon shareholders is urging the company to consider adding Bitcoin ($BTC) to its financial reserves.
They’ve submitted a proposal through the National Center for Public Policy Research (NCPPR), a think tank focused on free-market policies.
The shareholders suggest that Amazon should allocate at least 5% of its assets to Bitcoin to protect against inflation and diversify its investments.
The proposal is part of a broader trend where companies are starting to see Bitcoin as a valuable financial asset.
While Amazon hasn’t responded yet, the idea has sparked significant interest in the corporate world.
Why Bitcoin?
The NCPPR’s proposal highlights Bitcoin’s strong financial performance. Over the last five years, Bitcoin has grown by more than 1,200%, far outpacing traditional investments like corporate bonds.
In 2024 alone, Bitcoin’s value rose by 131%, while bonds provided much smaller returns. Supporters argue that Bitcoin is not just a hedge against inflation but also a way to achieve better long-term gains.
The letter points out examples of companies that have already embraced Bitcoin. MicroStrategy, a business software company, holds a significant amount of Bitcoin. Its stock has reportedly performed 537% better than Amazon’s in the past year.
Similarly, companies like Tesla and Block (formerly known as Square) have added Bitcoin to their reserves.
Amazon’s shareholders believe the company is well-positioned to take this step. With $585 billion in total assets—including $88 billion in cash and bonds—they argue that allocating a small portion to Bitcoin could be a strategic move.
“MicroStrategy and others show how Bitcoin can increase shareholder value”, the letter stated. It also notes that Amazon’s major shareholders, like BlackRock and Fidelity, already offer Bitcoin-related investment options to their clients.
While Amazon has not made any public statement about the proposal, the company has shown interest in blockchain technology, particularly for improving supply chain processes.
The proposal will now go through Amazon’s board of directors. If the board decides to include it in the company’s annual meeting agenda, shareholders will vote on it in April 2025.
The process mirrors a similar proposal made to Microsoft earlier this year. In October, the NCPPR encouraged Microsoft to add Bitcoin to its reserves. However, Microsoft’s board advised shareholders to vote against the proposal.
The board argued that the company already invests in a wide range of assets, including Bitcoin, and doesn’t see the need for a specific allocation.
Former Binance CEO, Changpeng Zhao (CZ), weighed in on Amazon’s situation via X. He suggested Amazon could start with a simpler step, such as accepting Bitcoin payments. “Simple. Accept bitcoin payments?”, CZ posted.
The bigger picture for Bitcoin adoption
This push for Bitcoin reflects a growing trend in the corporate world. Many companies are starting to view Bitcoin as a safe investment, especially in times of rising inflation.
Traditional assets like cash and bonds are losing their appeal as their returns fail to keep up with inflation. Bitcoin’s performance, despite its volatility, has made it an attractive alternative for some businesses.
Microsoft shareholders are set to vote on their Bitcoin proposal on 10 December 2024. However, Microsoft’s board is not in favour of the move.
The board and other critics, including Microsoft co-founder Bill Gates, have described Bitcoin as speculative and lacking intrinsic value.
On the other hand, supporters argue that rejecting Bitcoin could be a missed opportunity if its value continues to rise.
MicroStrategy, a strong advocate of Bitcoin, has accumulated over 402,000 $BTC, worth around $40 billion. Its aggressive approach has drawn both admiration and criticism, but the company continues to expand its Bitcoin holdings.
Even countries like El Salvador, led by President Nayib Bukele, have showcased their Bitcoin profits, strengthening the case for its adoption.
While critics like financial analyst, Peter Schiff, warn against Bitcoin’s speculative nature, others like “Rich Dad Poor Dad” author Robert Kiyosaki strongly support it.
Kiyosaki predicts Bitcoin will outperform traditional assets like gold and silver and believes it’s an essential hedge against inflation.
The decisions of companies like Amazon and Microsoft could have far-reaching effects on Bitcoin’s role in corporate finance.
With Bitcoin recently crossing the $100,000 mark, its adoption by major corporations could further solidify its position as a mainstream financial asset.
