Amazon shareholders push for Bitcoin treasury allocation 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.
2 min read
Updated: Dec. 9, 2024 at 10:48 am UTC
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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 Companyโs 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 Fundย CEO and co-founderย 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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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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In this article
Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
Satoshi Action Fund
Satoshi Action Fund (SAF) is a 501(c)(4) non-profit educational organization dedicated to informing policymakers and regulators about Bitcoin mining’s benefits and how it can be used as a tool to support other public policy goals.
Binance
Binance is a global cryptocurrency exchange that provides a platform for trading more than 100 cryptocurrencies.
Changpeng Zhao, popularly known as “CZ,” is a notable figure in the cryptocurrency world, primarily for founding and leading Binance, the world’s leading cryptocurrency exchange by trading volume.
Dennis Porter is the co-founder and chairman of Satoshi Action Fund,ย a 501(c)(4) non-profit educational organization dedicated to informing policymakers and regulators about Bitcoin miningโs benefits and how it can be used as a tool to support other public policy goals.