Amazon Shareholders Advocate for Bitcoin Integration
Investors in Amazon.com, Inc. (NASDAQ: AMZN) are actively pushing for the tech giant, valued at $2.3 trillion, to consider incorporating Bitcoin into its financial strategy. This initiative, proposed by the National Center for Public Policy Research, is set to be discussed at Amazon’s annual shareholder meeting in April 2025. The proposal urges Amazon’s Board to evaluate the potential benefits of adding Bitcoin (BTC) as a treasury asset to enhance long-term shareholder value.
Is Amazon Ready to Embrace Bitcoin?
Within the proposal, stakeholders express concerns that Amazon’s current treasury management strategy may not be robust enough to combat persistent inflation. They argue, “Corporations that wisely invest their assets often achieve greater shareholder value than those that are more profitable but less strategic in asset management.”
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Currently, Amazon’s treasury includes around $88 billion in cash, cash equivalents, and marketable securities, out of a total of $585 billion in assets as of September 30, 2024. The proposal highlights that rising inflation rates and low bond yields are diminishing the purchasing power of these holdings. With the US Consumer Price Index (CPI) averaging an annual rate of 4.95% over the past four years, and peaking at times up to 9.1%, the true inflation rate is likely even higher. Against this backdrop, the proposal suggests that Amazon has a “fiduciary duty” to explore inflation-resistant assets.
Bitcoin’s Strong Performance as an Argument for Integration
The proponents of the proposal cite Bitcoin’s impressive historical returns as a compelling case for its inclusion in Amazon’s treasury. As of December 6, 2024, the price of BTC increased by 131% over the prior year, vastly outperforming corporate bonds by an average of 126%. Over five years, Bitcoin surged by 1,246%, eclipsing corporate bond returns by roughly 1,242%. “Amazon should consider assets that appreciate more than bonds, even if they present short-term volatility,” the proposal argues.
Corporate Precedents and Institutional Interest
The proposal also references other publicly traded companies that have embraced BTC. For instance, MicroStrategy, an early corporate adopter of Bitcoin, experienced a stock performance that outpaced Amazon’s by 537% over the past year. Furthermore, institutional investors like BlackRock and Fidelity, both significant stakeholders in Amazon, have launched Bitcoin-focused investment products for their clients.
Shareholders speculate that U.S. government policy might evolve to favor a “Bitcoin strategic reserve” by 2025, indicating possible widespread acceptance. “Shareholders request that the Board conduct an assessment to determine if adding Bitcoin to the Company’s treasury is in the best long-term interests of shareholders,” the proposal concludes.
Amazon’s Decision in Context
This movement at Amazon follows a parallel initiative at Microsoft. According to Bitcoinist, Microsoft (MSF) shareholders are set to vote on a similar proposal to include Bitcoin as a reserve asset on December 10. However, analysts predict a low likelihood of approval, given the Microsoft Board’s recommendation to vote “no.”
As of now, Bitcoin is trading at $99,136, just shy of the $100,000 mark.
