Amazon Shareholders Push for Bitcoin Inclusion
In a bold move, shareholders of Amazon.com, Inc. (NASDAQ: AMZN) have put forth a proposal urging the tech giant to explore the possibility of adding Bitcoin to its balance sheet. This initiative, spearheaded by the National Center for Public Policy Research, is set to be discussed at Amazon’s annual shareholder meeting in April 2025. The crux of the proposal is a call for the Board to evaluate whether incorporating Bitcoin as a treasury asset aligns with the long-term interests of its shareholders.
A Case for Change: Inflation and Treasury Management
The rationale behind this proposal stems from concerns regarding Amazon’s current treasury management strategy amid rising inflation rates. The submission highlights that “companies that strategically invest their assets can enhance shareholder value more effectively than those that are merely profitable.”
As it stands, Amazon’s treasury comprises around $88 billion in cash and marketable securities out of total assets amounting to approximately $585 billion as of September 30, 2024. However, proponents argue that these holdings are losing purchasing power due to inflationary pressures and low bond yields.
To illustrate their point, they reference an average annual rate of 4.95% in the U.S. Consumer Price Index (CPI) over recent years—peaking at an alarming 9.1%. They contend that “the actual inflation rate may be even higher,” suggesting it’s imperative for Amazon to consider assets resistant to inflation.
Bitcoin’s Performance: A Compelling Argument
Supporters bolster their case by pointing out Bitcoin’s impressive historical performance metrics. As per data from December 6, 2024, BTC surged by an astonishing 131% over just one year—outpacing corporate bonds by an average margin of about 126%. Over five years, Bitcoin has skyrocketed by approximately 1,246%, significantly eclipsing corporate bond returns during this timeframe.
The proposal emphasizes that “Amazon should—and arguably has a fiduciary responsibility—to contemplate adding appreciating assets like Bitcoin into its treasury,” despite potential short-term volatility associated with such investments.
Learning from Others: Corporate Precedents
The document also draws attention to other publicly traded companies embracing cryptocurrency as part of their financial strategies. For instance, MicroStrategy—a pioneer in corporate crypto adoption—has seen its stock outperform Amazon’s by an eye-popping margin of about 537% over the past year alone.
Moreover, major institutional players like BlackRock and Fidelity have launched investment products focused on Bitcoin while holding significant stakes in Amazon itself. This trend suggests growing acceptance within mainstream finance; some shareholders speculate that U.S government policy could evolve towards establishing a “Bitcoin strategic reserve” by as early as 2025.
In conclusion: “We urge the Board to conduct thorough assessments regarding whether integrating Bitcoin into our company’s treasury would serve our long-term interests.”
Broader Context: Industry Trends
This push at Amazon comes on the heels of similar movements within other tech giants; Microsoft is currently facing pressure from its own shareholders who are advocating for including Bitcoin among its reserve assets—a vote scheduled for December 10 could determine if they follow suit or not despite recommendations against it from Microsoft’s Board.
At press time today (insert date), BTC was trading at around $99K—a figure reflecting both market enthusiasm and volatility inherent in cryptocurrency investments.
As we watch these developments unfold within major corporations like Amazon and Microsoft amidst shifting economic landscapes influenced heavily by inflationary trends and evolving asset classes like cryptocurrencies—the question remains whether traditional firms will adapt or resist change when it comes down to safeguarding shareholder value through innovative financial strategies.
