Amazon Shareholders Propose Bitcoin Strategy for Long-Term Value Enhancement

In a notable move, shareholders of Amazon.com Inc. AMZN have urged the online retail powerhouse to explore a treasury strategy that includes Bitcoin BTC/USD to bolster long-term shareholder value. This proposal marks a significant trend as Wall Street giants increasingly look to cryptocurrency in their financial strategies.

The National Center for Public Policy Research, a prominent U.S. think tank that advocates for free-market principles, submitted a shareholder proposal suggesting that Amazon should evaluate the possibility of retaining approximately 5% of its assets in Bitcoin. They argue that merely holding on to Amazon's substantial cash reserves, which total around $88 billion, does not adequately address shareholder interests, especially in light of ongoing inflationary pressures and currency debasement.

The proposal highlights that the average inflation rate in the United States has been approximately 0.95% over the last four years. However, the think tank contends that the real inflation rate could be considerably higher, nearly doubling the Consumer Price Index. They emphasize that corporations have a duty to enhance shareholder value not only through profit increases but also by protecting those profits against inflationary risks.

Shareholders noted the impressive performance of Bitcoin, with its value surging 131% over the past year. This increase outpaced the average growth of corporate bonds, which stood at 126%. Citing the success of MicroStrategy Inc. MSTR, which has been a forerunner in corporate Bitcoin adoption, they pointed out that its stock has outperformed Amazon by an astounding 537% in the past year.

Additionally, examples of other notable companies such as Tesla and Block were highlighted to demonstrate the growing trend in corporate cryptocurrency investment. Furthermore, Amazon's second-largest shareholder, BlackRock, manages the iShares Bitcoin Trust ETF IBIT, which is currently the largest Bitcoin-based investment fund. This reinforces the momentum for corporate Bitcoin investments.

The think tank argued for the inclusion of Bitcoin in Amazon's treasury, acknowledging its possible short-term volatility but asserting that diversifying the balance sheet with a small portion of Bitcoin can mitigate risks without exposing the company to significant fluctuations. They insist that at the very least, Amazon should assess the potential advantages of allocating a fraction of its assets, such as 5%, to Bitcoin.

This proposal arrives just ahead of a significant upcoming vote at Microsoft regarding a similar risk assessment for investing in Bitcoin at their shareholders' meeting on December 10. Like Amazon, the Microsoft proposal also references MicroStrategy's remarkable stock performance following its strategic pivot toward Bitcoin investment.

Indeed, the MicroStrategy Chairman, Michael Saylor, recently presented to Microsoft's board, claiming that a full-fledged adoption of Bitcoin could lead to a potential addition of $5 trillion to the company's market capitalization.

Current market data indicates that Bitcoin is trading at $99,447.77, down approximately 0.93% in the last 24 hours. Meanwhile, shares of Amazon closed up 2.94% at $227.03 in the last trading session.

Bitcoin, Shareholders, Investment