Shareholders of Amazon.com, Inc. (NASDAQ: AMZN) have submitted a proposal urging the $2.3 trillion technology conglomerate to consider adding Bitcoin to its balance sheet. The measure, submitted by the National Center for Public Policy Research and slated for discussion at Amazon’s 2025 annual shareholder meeting in April, calls on the company’s Board to assess whether incorporating BTC as a treasury asset would serve the best long-term interests of shareholders.
Will Amazon Buy Bitcoin?
In the proposal, shareholders stress that Amazon’s current treasury management may be insufficient in the face of ongoing inflation. As stated in the submission: “Corporations that invest their assets wisely can – and often do – increase shareholder value more than more profitable businesses that don’t.”
According to the supporting materials, Amazon’s current treasury includes approximately $88 billion in cash, cash equivalents, and marketable securities, out of a total $585 billion in assets (as of September 30, 2024). The proposal’s authors argue that inflationary pressures and sub-inflationary bond yields are eroding the purchasing power of these holdings.
They cite a US Consumer Price Index (CPI) average annual rate of 4.95% over the past four years, at times peaking at 9.1%, while suggesting that “in reality, the true inflation rate is significantly higher.” Against this backdrop, the submission suggests that Amazon has a “fiduciary duty” to consider inflation-resistant assets.
The shareholders point to Bitcoin’s historical returns to bolster their case. They note that as of December 6, 2024, BTC price rose 131% over the previous year, outperforming corporate bonds “by 126% on average.”
Over a five-year horizon, Bitcoin’s price increased by 1,246%, surpassing corporate bond returns by an estimated 1,242% during that period. “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 short-term,” the proposal states.
The document also references other publicly listed firms that hold BTC. MicroStrategy, one of the earliest corporate adopters, saw its stock outperform Amazon’s by 537% over the previous year, according to the proposal.
In addition, institutional players such as BlackRock and Fidelity—both of which hold significant stakes in Amazon—have introduced Bitcoin-focused investment products for their clients. The shareholders further suggest that U.S. government policy could shift toward a “Bitcoin strategic reserve” by 2025, possibly signaling 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,” the proposal concludes.
This push at Amazon comes on the heels of a similar initiative at Microsoft. As reported by Bitcoinist, Microsoft (MSF) shareholders are set to vote on December 10 on a proposal to include Bitcoin in its treasury as a reserve asset. However, analysts note that the chances of approval are low after the Microsoft Board recommended a “no” vote.
At press time, BTC traded at $99,136.
Related Posts
