Amazon Shareholders Urge Company to Invest 5% in Bitcoin
Amazon shareholders are urging the company to consider investing 5% of its treasury assets into Bitcoin, mirroring the approach adopted by MicroStrategy to hedge against fiat inflation and enhance shareholder value. The proposal was submitted by the National Center for Public Policy Research (NCPPR), a think tank that promotes free-market principles, and has been widely circulated by Tim Kotzman on social media.
The proposal highlights Bitcoin’s historical performance relative to traditional assets like corporate bonds and underscores the substantial returns companies such as MicroStrategy have achieved due to their Bitcoin holdings. The NCPPR stated, “While Bitcoin is currently a volatile asset—similar to Amazon stock at times throughout its history—companies have a responsibility to maximize shareholder value in both the short and long term. Diversifying the balance sheet by including some Bitcoin addresses this issue without taking on excessive volatility.”
The proposal suggests that Amazon, at the very least, explore the benefits of holding even a modest portion, such as 5%, of its assets in Bitcoin.
Bitcoin Gains Popularity in Corporate Treasuries
Bitcoin’s price has surged over 40% since the U.S. presidential election, fueled by expectations of a cryptocurrency-friendly administration under Donald Trump. This market optimism propelled Bitcoin to new highs in November, breaching the $100,000 mark.
With annual growth exceeding 125%, Bitcoin has outperformed traditional investment assets like gold and the S&P 500 index. MicroStrategy, a pioneer in corporate Bitcoin adoption, has seen its share price rise by more than 500% year-over-year, surpassing Bitcoin’s own performance. The company holds 402,100 BTC on its balance sheet, valued at approximately $39 billion. In contrast, Amazon’s stock has risen just over 50% in the same period.
The proposal draws attention to the disparity, stating, “MicroStrategy, with Bitcoin on its balance sheet, has outperformed Amazon’s stock by 537% in the last year. Institutional and corporate adoption of Bitcoin is becoming increasingly common.”
Amazon, which reported $585 billion in total assets at the end of Q3, holds $88 billion in cash, cash equivalents, and marketable securities. These include Treasuries, foreign government bonds, and corporate bonds. However, the proposal argues that this asset mix does not adequately safeguard shareholder value against inflation and volatility.
The petition calls for Amazon’s board to examine whether allocating Bitcoin aligns with the long-term interests of its shareholders.
Microsoft Also Urged to Consider Bitcoin
The appeal to Amazon comes in the wake of a similar proposal directed at Microsoft, urging the tech giant to evaluate the potential benefits of Bitcoin investments. MicroStrategy co-founder Michael Saylor recently presented his company’s Bitcoin strategy to Microsoft and its CEO, Satya Nadella. Microsoft shareholders are set to vote on this proposal on December 10.
As companies explore Bitcoin as a strategic treasury asset, Amazon faces mounting pressure to take steps toward evaluating the cryptocurrency’s potential role in enhancing shareholder value.