A group of Amazon shareholders is calling on the company to diversify its holdings by allocating at least 5% of its assets to Bitcoin.
The proposal, submitted by the National Center for Public Policy Research (NCPPR), aims to encourage Amazon to adopt Bitcoin as a financial hedge and value driver.
Why Bitcoin makes sense for Amazon
The proposal claimed 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), which is often used to measure inflation, arguing that it underestimates the true rate of inflation, which could double. As cash loses value and bond yields fall below actual inflation, the proposal suggests Bitcoin could be a more resilient alternative.
Bitcoin’s performance further strengthens that case. Over the past year, Bitcoin has gained 131% and outperformed corporate bonds by an average of 126%.
While Bitcoin is known for its volatility, the proposal noted that Amazon's stock price has also experienced fluctuations throughout its history. However, despite this volatility, it did not prevent Amazon from maximizing shareholder value over the long term.
The proposal called on Amazon to evaluate Bitcoin as a viable financial asset and emphasized that even a modest allocation of 5% could increase shareholder value. By diversifying its balance sheet, Amazon could potentially hedge against inflation without exposing itself to too much risk.
NCPPR argued that such a move is in line with the company's fiduciary responsibility to secure and grow shareholder wealth over the long term. With this in mind, the company states:
“Our shareholders are requesting that our board conduct an evaluation to determine whether adding Bitcoin to our treasury is in the long-term best interests of our shareholders.”
Expanding the use of Bitcoin
Meanwhile, industry leaders are proposing that Amazon incorporate Bitcoin payments into its operations.
Binance co-founder Changpeng Zhao has suggested that the company could build Bitcoin reserves by accepting payments in the digital asset.
However, Zhao acknowledged challenges such as Bitcoin's slow transaction speed. Nevertheless, he highlighted the advantages of top digital assets over traditional finance, pointing out their seamless functionality.
Dennis Porter, CEO and co-founder of the Satoshi Act Fund, echoed this sentiment, suggesting Amazon would encourage Bitcoin payments with discounts.
Porter argued that such a strategy could help Amazon build “strategic Bitcoin reserves” while driving cryptocurrency adoption among customers.
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