Amazon's Shareholders Push for Bitcoin in Treasury to Strengthen Reserves

Shareholders Push Amazon to Embrace Bitcoin—A Bold Treasury Move?

Amazon shareholders are pressing the company’s Board to explore the potential benefits of adding bitcoin to its financial strategy. The proposal, submitted by the National Center for Public Policy Research on Dec. 6, 2024, calls for a formal assessment, stating:

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 initiative seeks to determine whether bitcoin could help protect and enhance shareholder value in the face of persistent inflation and declining yields from traditional assets.

This proposal stems from concerns over the diminishing purchasing power of Amazon’s $88 billion in cash, bonds, and similar holdings. Inflation, averaging 4.95% over the past four years and reportedly higher by alternative measures, has made it increasingly difficult for traditional assets to keep pace. The National Center highlights bitcoin’s impressive performance—131% growth over the past year and 1,246% over five years—as evidence of its potential as a hedge against inflation and a means to grow wealth.

As a shareholder, the National Center has the right to propose changes or assessments to Amazon’s operations, as long as these align with shareholder rights and corporate governance guidelines. Such proposals are a common method for advocacy groups to influence large corporations’ policies on issues ranging from financial strategies to social responsibility. The National Center is leveraging its position to prompt Amazon’s Board to assess bitcoin as a potential treasury asset, aligning with its views on the importance of preserving shareholder value against inflation and economic risks.

The proposal states:

Though bitcoin is currently a volatile asset – as Amazon stock has been at times throughout its history – corporations have a responsibility to maximize shareholder value over the long-term as well as the short-term.

“Diversifying the balance sheet by including some bitcoin solves this problem without taking on too much volatility. At minimum, Amazon should evaluate the benefits of holding some, even just 5%, of its assets in bitcoin,” the proposal adds.

The call for action also draws on examples of companies like Microstrategy, which saw its stock outperform Amazon’s by 537% in the past year, thanks to its bitcoin holdings. Other corporations, such as Tesla and Block, have adopted bitcoin, and major Amazon shareholders like Blackrock and Fidelity offer bitcoin-related investment options. Shareholders argue that exploring bitcoin’s potential could align Amazon with evolving corporate trends while providing protection against inflation’s adverse effects. The National Center for Public Policy Research has also submitted a shareholder proposal to Microsoft, urging the company to assess the potential benefits of investing in bitcoin.