Shareholders of Amazon.com, Inc. (NASDAQ: AMZN) have put forth a proposal encouraging the $2.3 trillion tech giant to explore the possibility of adding Bitcoin to its balance sheet. This initiative, proposed by the National Center for Public Policy Research, is set to be deliberated at Amazon’s 2025 annual shareholder meeting in April. The proposal asks the company’s Board to evaluate whether the inclusion of BTC as a treasury asset would align with the long-term interests of its shareholders.
Is Amazon Considering Bitcoin?
In their proposal, shareholders argue that Amazon’s existing treasury management may not adequately address the challenges posed by ongoing inflation. The submission notes: “Corporations that invest their assets wisely can – and often do – increase shareholder value more than more profitable businesses that don’t.”
The supporting documentation reveals that Amazon’s treasury holds roughly $88 billion in cash, cash equivalents, and marketable securities, out of a total asset base of $585 billion (as of September 30, 2024). The authors of the proposal contend that inflationary trends and below-inflation bond yields are diminishing the purchasing power of these assets.
They reference an average annual rate of 4.95% for the US Consumer Price Index (CPI) over the last four years, with a peak of 9.1%, asserting that “in reality, the true inflation rate is significantly higher.” In light of this situation, the submission posits that Amazon has a “fiduciary duty” to investigate inflation-hedging assets.
The shareholders cite Bitcoin’s past performance to support their argument, noting that as of December 6, 2024, BTC’s price had surged by 131% over the past year, outpacing corporate bonds “by 126% on average.”
Over a five-year period, the value of Bitcoin increased by 1,246%, exceeding corporate bond returns by approximately 1,242%. The proposal asserts: “Amazon should – and perhaps has a fiduciary duty to – consider adding assets to its treasury that appreciate more than bonds, even if those assets are more volatile in the short term.”
Additionally, the document highlights other publicly traded companies holding BTC. MicroStrategy, an early corporate adopter, reportedly saw its stock outperform Amazon’s by 537% over the last year, according to the proposal.
Moreover, institutions such as BlackRock and Fidelity—both significant stakeholders in Amazon—have launched Bitcoin-focused investment products for their clients. The shareholders further posit that by 2025, U.S. government policy could evolve towards establishing a “Bitcoin strategic reserve,” potentially signifying broader mainstream acceptance.
“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,” concludes the proposal.
This initiative at Amazon follows a similar movement at Microsoft. As reported by Bitcoinist, Microsoft (MSF) shareholders are scheduled to vote on December 10 regarding a proposal to incorporate Bitcoin into its treasury as a reserve asset. However, analysts suggest that the likelihood of approval is slim, as the Microsoft Board has recommended a “no” vote.
At the time of writing, BTC was trading at $99,136.
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