Key Points
- Amazon shareholders, led by the National Center for Public Policy Research, are pushing for a minimum 5% Bitcoin allocation in the company’s treasury to combat inflation and enhance shareholder value.
- The proposal highlights Bitcoin’s 134% surge in 2024 and points to the success of companies like MicroStrategy, which has seen over 500% stock appreciation compared to Amazon’s 49% growth.
Shareholders Call for Crypto Diversification
In a significant move reflecting growing institutional interest in cryptocurrency, Amazon (AMZN) shareholders are urging the e-commerce giant to follow MicroStrategy’s lead by allocating at least 5% of its treasury reserves to Bitcoin. The proposal, submitted by the conservative think tank National Center for Public Policy Research (NCPPR), argues that Amazon has a fiduciary responsibility to protect shareholder value through asset diversification.
Current Treasury Strategy Under Scrutiny
The proposal takes aim at Amazon’s existing asset management approach, noting that the company’s $585 billion in total assets includes $88 billion in cash, cash equivalents, and traditional securities such as Treasury notes and corporate bonds. Shareholders argue this conservative mix isn’t adequately protecting value in the current economic climate, especially given Bitcoin’s strong performance as an inflation hedge.
Bitcoin’s Performance Drives Corporate Interest
The timing of the proposal coincides with Bitcoin’s remarkable performance in 2024, having recently broken through the $100,000 barrier and delivering a 134% return year-to-date. The proposal specifically points to MicroStrategy’s success, whose stock has outperformed Amazon by a significant margin, along with other major corporations like Tesla and Block that have already embraced Bitcoin as a treasury asset.
This development follows a similar initiative from the NCPPR targeting Microsoft, with shareholders scheduled to vote on their Bitcoin consideration proposal on December 10. The movement represents a growing trend of institutional investors pushing for traditional companies to embrace cryptocurrency as a serious treasury management tool.
