Bitcoin on a stack of coins with Amazon logo on a laptop screen. Source: 24K-Production - stock.adobe.com

Key Takeaways:

Amazon shareholders, led by NCPPR, proposed a 5% Bitcoin allocation to hedge against inflation and enhance long-term value.
The proposal argues Amazon’s current asset mix underperforms and cites MicroStrategy’s success with Bitcoin as an example.
Bitcoin’s 134% YTD growth and outperformance of gold and the S&P 500 underpin the recommendation.

Amazon shareholders, led by the National Center for Public Policy Research (NCPPR), have proposed allocating 5% of Amazon’s corporate treasury to bitcoin as a hedge against inflation.

The proposal argues that Amazon’s current asset strategy, focused on cash, equivalents, and bonds, inadequately protects shareholder value.

BREAKING: Amazon shareholders request the company explores adds #Bitcoin to its treasury.

First Microsoft, now Amazon.

Apple is next…then every single boardroom. pic.twitter.com/ynTsJWNcwF
— Bitcoin Archive (@BTC_Archive) December 8, 2024

It cites companies like MicroStrategy and Tesla, which have seen significant gains by holding bitcoin in their reserves, as evidence of bitcoin’s potential to outperform traditional investments.

Bitcoin, despite its volatility, has surged 134% this year and recently surpassed $100,000, outperforming assets like gold and the S&P 500.

The proposal suggests that Amazon, with $88 billion in cash and marketable securities out of $585 billion in total assets, could benefit from bitcoin’s long-term appreciation potential.

It highlights the importance of corporations diversifying their balance sheets to maximize shareholder value over both short- and long-term horizons.

The NCPPR has made similar efforts with Microsoft, where a vote on a bitcoin proposal is scheduled for December 10.

The Amazon proposal reflects growing interest in bitcoin as an inflation hedge and an asset class capable of enhancing corporate treasury strategies amid shifting economic conditions.