A group of Amazon (AMZN) shareholders is pushing the e-commerce giant to follow the path of companies like MicroStrategy (MSTR) by diversifying part of its treasury reserves into Bitcoin (BTC). The goal is to hedge against inflation and maximize long-term shareholder value.
The proposal, submitted by the National Center for Public Policy Research (NCPPR), emphasizes that despite Bitcoin’s current volatility, it represents a strategic asset worthy of consideration for corporate treasury management.
The Shareholder Proposal Overview
The formal shareholder request argues that Amazon has a fiduciary responsibility to explore all viable avenues for protecting and growing shareholder assets. It specifically highlights Bitcoin’s potential as a hedge against monetary inflation and currency devaluation.
The proposal states:
Although Bitcoin is currently a volatile asset—much like Amazon stock has been at times in its history—corporations have a responsibility to maximize shareholder value over both the long and short term. Diversifying the balance sheet with some Bitcoin addresses this without introducing excessive volatility.
It further recommends that Amazon should, at a minimum, evaluate the benefits of holding even a small portion, such as 5%, of its assets in Bitcoin.
Bitcoin’s Performance and Corporate Adoption
Bitcoin, the leading cryptocurrency by market capitalization, has seen remarkable growth, with its value increasing by over 134% since the beginning of the year and breaking past key resistance levels. This performance has outpaced traditional safe-haven assets like gold and major indices such as the S&P 500.
Notably, MicroStrategy—a publicly traded company known for its substantial Bitcoin holdings—has seen its stock surge by more than 500% this year. In comparison, Amazon’s stock appreciated by 49% over the same period.
The proposal also points to other major firms that have incorporated Bitcoin into their corporate strategies, including Tesla and Block (formerly Square). These companies have recognized Bitcoin not only as a store of value but also as a strategic treasury reserve asset.
Amazon’s Current Treasury Composition
As of the end of the third quarter, Amazon reported total assets of $585 billion. Within this, $88 billion was held in cash, cash equivalents, and marketable securities—a portfolio consisting largely of U.S. Treasury bonds, foreign government bonds, and corporate debt.
The shareholders argue that this conventional asset mix may no longer be sufficient to protect against inflationary pressure and macroeconomic uncertainty. They believe that adding Bitcoin could improve the risk-return profile of Amazon’s reserves.
Precedents and Broader Movement
This is not the first time the NCPPR has advocated for Bitcoin adoption in corporate treasuries. Last month, the conservative think tank submitted a similar proposal to Microsoft shareholders, urging the tech company to consider Bitcoin diversification.
Microsoft’s shareholders are scheduled to vote on that proposal on December 10. The outcome may influence how other publicly traded companies approach similar proposals in the future.
The trend of corporate Bitcoin adoption continues to gain momentum as more institutions recognize the cryptocurrency’s potential role in modern treasury management. 👉 Explore more strategies for treasury diversification
Frequently Asked Questions
Why are shareholders asking Amazon to buy Bitcoin?
Shareholders believe that allocating a portion of Amazon’s treasury reserves to Bitcoin can serve as a hedge against inflation, improve long-term returns, and maximize shareholder value, especially in the current macroeconomic climate.
How much Bitcoin is the proposal suggesting Amazon acquire?
The proposal recommends that Amazon evaluate holding at least 5% of its assets in Bitcoin. This would represent a significant but manageable allocation aimed at diversification.
What are the risks of a company like Amazon investing in Bitcoin?
Bitcoin is known for its price volatility, which introduces short-term financial uncertainty. However, advocates argue that over the long term, its limited supply and growing adoption may offset this volatility and provide substantial returns.
Which other companies hold Bitcoin in their treasury?
Notable examples include MicroStrategy, Tesla, Block, and several others. These companies have added Bitcoin to their balance sheets as a strategic reserve asset.
How does Bitcoin compare to traditional assets like bonds or gold?
While traditional assets like bonds offer stability and gold is a classic inflation hedge, Bitcoin has demonstrated stronger growth in recent years. Its decentralized nature and fixed supply make it attractive as “digital gold” for the modern era.
When will a decision on this proposal be made?
The proposal will be subject to a shareholder vote. Amazon has not yet announced a specific date for the vote, but it will likely be addressed in an upcoming shareholder meeting.