Amazon shareholders are calling on the companyโs Board of Directors to add Bitcoin to its treasury, pointing to the success of Michael Saylorโs MicroStrategy as a compelling example of corporate Bitcoin adoption.
Call to Add Bitcoin
Amazon shareholders have urged the companyโs Board of Directors to consider adding Bitcoin to its treasury, citing MicroStrategyโs success and the growing momentum behind corporate Bitcoin adoption.
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The proposal, submitted by the National Center for Public Policy Research during the annual shareholder meeting, suggests allocating at least 5% of Amazonโs reserves to Bitcoin as a diversification strategy.
Amazon currently holds $585 billion in total assets, including $88 billion in cash, cash equivalents, and marketable securities such as U.S. government bonds, foreign government bonds, and corporate bonds.
“Cash is consistently being debased, and bond yields are lower than the true inflation rate,” the proposal states. “Amazon isnโt adequately protecting billions of dollars in shareholder value by relying solely on these assets.”
Shareholders argue that Amazon hasโor may even have a fiduciary dutyโto consider adding assets to its treasury that can outperform bonds, even if they come with short-term volatility.
A Hedge Against Inflation
The push for Bitcoin is grounded in the need to safeguard shareholder value not only by increasing profits but also by protecting those profits from depreciation.
โDuring inflationary times, corporations have a fiduciary duty to maximize shareholder value by both growing profits and protecting them from debasement,โ the document argues.
Over the past four years, inflation in the U.S. has averaged 4.95% annually, based on the CPI, peaking at 9.1% in June 2022. Shareholders contend that actual inflation may have been nearly double these figures, forcing companies to grow their assets at those rates just to maintain value.
According to Amazon shareholders, Bitcoin has demonstrated strong performance in this context. Over the past year, its price surged by 131%, outperforming corporate bonds, which grew by 126%. Over five years, Bitcoin soared by 1,246%, surpassing the 1,242% returns of corporate bonds.
Pointing to MicroStrategyโs Success
Shareholders also highlighted the example of MicroStrategy, a firm whose Bitcoin holdings have fueled its stock price growth, outperforming Amazon’s stock by 537% over the past year.
They further noted that other tech giants like Tesla and Block have already added Bitcoin to their balance sheets. Additionally, institutional players like BlackRock and Fidelity are also advocating for Bitcoin by offering Bitcoin ETFs to their clients and the US government may consider forming a Bitcoin strategic reserve by 2025.
Microsoftโs Decision Looms
The Amazon proposal comes as Microsoft faces a similar decision. As previously covered on DailyCoin, MicroStrategyโs founder, Michael Saylor, recently presented to Microsoft on the potential benefits of holding Bitcoin in its strategic reserves.
Microsoftโs Board of Directors is expected to address the matter at a meeting on December 10. However, the board has previously recommended against the idea, emphasizing that the company already evaluates a diverse range of investment assets as part of its broader strategic policy.
Why This Matters
If major corporations like Amazon and Microsoft decide to allocate a portion of their reserves to Bitcoin, it could have significant implications for the broader cryptocurrency market. Such decisions would further solidify Bitcoinโs status as a viable asset for traditional corporations and financial institutions.
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