Amazon Shareholders Call for Bitcoin Inclusion in Treasury Strategy

In a significant move, shareholders of the online retail giant Amazon.com Inc. (NASDAQ:AMZN) have urged the company to consider adopting a Bitcoin treasury strategy. This proposal aligns with similar initiatives from major players on Wall Street, aimed at enhancing shareholder value over the long term.

The proposal was submitted by the National Center for Public Policy Research, a think tank that promotes free-market policies. They have requested Amazon to conduct a thorough assessment regarding the possibility of allocating about 5% of its assets to Bitcoin.

The think tank argues that Amazon's current strategy of holding approximately $88 billion in cash and equivalents is not sufficient for providing shareholder value, given the ongoing risks of currency debasement attributed to inflation.

In their letter, they noted that the average inflation rate in the U.S. stood at 0.95% over the past four years, suggesting that actual inflation could be significantly higher, possibly even double that reflected in the Consumer Price Index (CPI).

The statement emphasized, "During inflationary periods, companies have a fiduciary duty to enhance shareholder value. This should be achieved not only through profit maximization but also through safeguarding profits against erosion from inflation."

Shareholders specifically pointed to Bitcoin's impressive performance, highlighting that it surged by 131% in the past year alone, outpacing the average growth of corporate bonds by 126%.

The proposal took inspiration from MicroStrategy Inc. (NASDAQ:MSTR), which has been a frontrunner in corporate Bitcoin adoption. The stock of MicroStrategy has outperformed Amazon's shares dramatically, achieving a growth rate of 537% over the last year.

Furthermore, the think tank referenced other notable examples, including Tesla and Block, as well as BlackRock, Amazon's second-largest shareholder, which operates the iShares Bitcoin Trust ETF, currently the largest Bitcoin-focused investment fund. The proposal from the Center emphasizes the need to include Bitcoin in Amazon's treasury, despite its known volatility.

They stated, "Increasing the balance sheet's diversity by incorporating a fraction of Bitcoin mitigates risk without introducing excessive volatility. At the very least, Amazon should assess the potential advantages of holding a small amount, like 5%, of its assets in Bitcoin."

This proposal emerges as Amazon prepares for a shareholders' meeting scheduled where similar discussions regarding Bitcoin investments will take place, including a vote at Microsoft on December 10. Microsoft’s proposal also draws parallels to MicroStrategy's successful transitioning towards a Bitcoin-centric strategy.

Michael Saylor, Chairman of MicroStrategy, has been active in advocating for Bitcoin, even presenting to Microsoft's board, where he projected that full adoption of Bitcoin could result in an astounding $5 trillion increase in market capitalization.

As this discussion unfolds, Bitcoin is currently trading at approximately $99,447.77, having seen a decrease of 0.93% over the past 24 hours. On the other hand, Amazon shares experienced a rise of 2.94%, closing at $227.03 during the last trading session.

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Amazon, Shareholders, Bitcoin