The idea advises Amazon invest in Bitcoin to preserve shareholder wealth from inflation.
Amazon shareholders are pressing for the corporation to commit at least 5% of its assets to Bitcoin, according to a proposal from the free-market think tank National Center for Public Policy Research (NCPPR).
Tim Kotzman proposes adding Bitcoin to Amazon’s treasury to manage inflation and diversify assets. It points to MicroStrategy’s and Tesla’s Bitcoin investments and Bitcoin’s outperformance of corporate bonds.
The stock of Bitcoin-holding MicroStrategy outperformed Amazon shares by 537% last year. They have company. The letter noted that Tesla and Block have added Bitcoin to their balance sheets, BlackRock and Fidelity, Amazon’s second and fourth largest institutional shareholders, offer Bitcoin ETFs, and the US government may create a Bitcoin strategic reserve in 2025.
Amazon’s board should assess if Bitcoin treasury allocation benefits shareholders long-term. Amazon has shown interest in blockchain technology, notably in supply chain management, but has not responded to the idea.
The NCPPR’s proposal is part of a larger institutional Bitcoin drive. The research group sent Microsoft a similar letter pushing Bitcoin investment in October.
The board of Microsoft has recommended shareholders vote against their request, saying they currently evaluate “a broad spectrum of investable assets,” including Bitcoin.
Microsoft may face shareholder action if it doesn’t invest in Bitcoin and its value rises, according to the NCPPR.
Microsoft shareholders will vote on Bitcoin consideration on December 10. Amazon’s board of directors will consider shareholder proposals and determine whether to include them in the proxy statement for the annual shareholders meeting.
If the proxy statement includes the proposal, shareholders will vote during the April 2025 annual meeting. Votes for and against the proposition will determine the result.
Like Microsoft, the Amazon board of directors advises shareholders on how to vote on each proposal. Financial organizations including Vanguard Group, BlackRock, State Street, Fidelity Management & Research, Geode Capital Management, and JPMorgan are top Amazon stockholders.
Also Read: Trump claims he never intended to fire Jerome Powell from the Fed
