Amazon Shareholders Urge Acquisition of Bitcoin for Treasury

• Amazon shareholders propose Bitcoin as a hedge against inflation for its $88B cash reserves.  
• Bitcoin outperformed bonds with 131% growth in 2024, driving corporate interest in adoption.  
• CZ suggests Amazon could start by accepting Bitcoin payments as a simpler first step.  

As a strategic financial move, Amazon shareholders recommended the company to invest in Bitcoin. The crypto, being an inflation shield, has higher returns than the returns on traditional assets like bonds. With the rise of major corporations, Bitcoin is being used within organizational portfolios. 

The National Center for Public Policy Research presented the proposal, highlighting inflation concerns. It noted that U.S. inflation averaged 4.95% over four years, peaking at 9.1% in 2022. Shareholders claim Amazon’s $88 billion in cash reserves is vulnerable to inflation-driven erosion. They suggested Bitcoin as a hedge against this risk due to its limited supply and strong performance.

According to the proposal, Bitcoin’s growth outpaced bonds. Surging over 131% over the past year, Bitcoin has witnessed an increase of 1,246% in five years. Further, the shareholders pointed out the development of firms like MicroStrategy, Tesla, and Block after acquiring Bitcoin in their assets. Also, with Bitcoin acquisition, MicroStrategy’s stock rose by 537%, highlighting its high-growth potential.

The proposal recommends Amazon to allocate at least 5% of its assets to Bitcoin. It argued that this small allocation could diversify the company’s reserves while providing long-term value. Shareholders acknowledge Bitcoin’s volatility but compare it to Amazon stock’s historical price swings.

The proposal has attracted different responses within the crypto space. In response to the X post, former Binance CEO Changpeng Zhao (CZ) stated, “Simple. Accept bitcoin payments.” This statement reflects the growing interest in integrating Bitcoin in operations that go beyond just managing cash transactions as a treasury.

This proposal aligns with a broader trend among major companies. Microsoft shareholders are also voting on a similar Bitcoin treasury strategy. Advocates argue that Bitcoin’s adoption can protect corporate reserves and signal innovation. The Amazon proposal boosts the debate on Bitcoin in corporate finance.

The National Center for Public Policy Research emphasized Bitcoin’s potential to protect shareholder value. Citing MicroStrategy’s success, it argued that Bitcoin could make Amazon a financial innovator. While no decision has been made, the proposal highlights the increasing corporate interest in cryptocurrencies as a strategic financial tool.

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