Amazon's Shareholders Advocate for Bitcoin in Treasury Strategy

Amazon's Shareholders Advocate for Bitcoin in Treasury Strategy

Amazon shareholders are urging the company to evaluate adding bitcoin to its financial reserves, citing inflation concerns and the cryptocurrency's impressive long-term returns. The proposal, submitted by the National Center for Public Policy Research on December 6, 2024, calls for a detailed assessment of bitcoin as a treasury asset to safeguard shareholder value.

A Call to Strengthen Amazon's Financial Strategy

The proposal requests Amazon’s Board to determine whether incorporating bitcoin into the company’s $88 billion cash and bond reserves is in the best long-term interest of shareholders. This push is rooted in concerns over the declining purchasing power of traditional assets due to persistent inflation, which has averaged nearly 5% annually over the past four years.

Bitcoin’s historical performance is central to the argument. With a staggering 1,246% growth over the past five years and 131% in the past year alone, proponents view it as a viable hedge against inflation and a means to bolster reserves.

Leveraging Corporate Trends and Examples

The National Center’s proposal highlights the success of companies like MicroStrategy, Tesla, and Block, which have adopted bitcoin as part of their financial strategies. MicroStrategy, for instance, has seen its stock outperform Amazon’s by 537% over the past year due to its bitcoin holdings.

Amazon shareholders argue that even a modest allocation—5% of reserves—could diversify its balance sheet while mitigating risks associated with inflation and economic uncertainty. Major Amazon shareholders like BlackRock and Fidelity already offer bitcoin-related investment products, further signaling growing corporate adoption.

A Broader Advocacy Movement

This is not an isolated effort. The National Center for Public Policy Research has made similar proposals to other tech giants like Microsoft, emphasizing the need for forward-thinking financial strategies to preserve and grow shareholder value in an evolving economic landscape.

As bitcoin continues to gain mainstream acceptance, Amazon faces a pivotal decision: Will it join the ranks of companies leveraging cryptocurrency to enhance financial resilience, or stick to traditional methods that some shareholders deem inadequate for the future?