Amazon shareholders push for Bitcoin treasury allocation

The proposal highlights Bitcoin's impressive returns over the past year as a rationale for Amazon's treasury diversification.

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A group of Amazon shareholders has urged the company to diversify its treasury holdings by allocating at least 5% of its assets to Bitcoin.

The proposal, submitted by the National Center for Public Policy Research (NCPPR), seeks to encourage Amazon to adopt Bitcoin as a financial hedge and value driver.

Why Bitcoin makes sense for Amazon

The proposal argued that Bitcoin could protect Amazon’s $88 billion in cash and short-term assets from inflation.

The group raised concerns about the Consumer Price Index (CPI), often used to measure inflation, arguing that it underestimates actual inflation rates, which could be twice as high. With cash losing value and bond yields falling short of actual inflation, the proposal suggests that Bitcoin offers a more resilient alternative.

Bitcoin’s performance further strengthens the case. Over the past year, Bitcoin has risen by 131%, significantly outperforming corporate bonds by an average of 126%.

While Bitcoin is known for its volatility, the proposal noted that Amazon’s stock has also experienced fluctuations throughout its history. Yet, this volatility has not deterred Amazon from maximizing shareholder value in the long term.

The proposal urged Amazon to evaluate Bitcoin as a viable treasury asset, emphasizing that even a modest 5% allocation could enhance shareholder value. By diversifying its balance sheet, Amazon could hedge against inflation without exposing itself to excessive risk.

The NCPPR argued that such a move aligns with the company’s fiduciary responsibility to secure and grow shareholder wealth over time. Considering this, the firm stated:

“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.”

Expanding Bitcoin use

Meanwhile, industry leaders have proposed that Amazon incorporate Bitcoin payments into its operations.

Binance co-founder Changpeng Zhao suggested the company could build a Bitcoin reserve by accepting payments in the digital asset.

However, Zhao acknowledged challenges, including Bitcoin’s slower transaction speeds. Despite this, he emphasized the top digital asset’s advantage over traditional finance, noting its seamless functionality.

Satoshi Act Fund CEO and co-founder Dennis Porter echoed this sentiment, suggesting Amazon incentivize Bitcoin payments with discounts.

Porter argued that such a strategy could help Amazon build a “Strategic Bitcoin Reserve” while promoting crypto adoption among its customers.

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