Amazon shareholders are calling on the tech conglomerate to allocate a portion of its $88 billion in cash and short-term assets to invest in Bitcoin. This follows a proposal from the National Center for Public Policy Research (NCPPR).
The move comes as Bitcoin (BTC) increasingly attracts the attention of companies as a hedge against inflation.
Amazon Shareholders Support Bitcoin Reserve Fund
In its proposal, the NCPPR warns that inflation could erode the purchasing power of Amazon's large cash holdings. The organization criticizes the CPI as an unreliable measure, arguing that the actual inflation rate could reach 10%. The letter emphasizes that while Bitcoin has short-term volatility, its historical performance has far exceeded traditional corporate bonds.
"Amazon should – and may have a fiduciary duty to – consider adding assets to its reserve that may appreciate more than bonds, even if those assets have greater short-term volatility," the NCPPR wrote in the proposal.
Podcast host Tim Kotzman, who shared the proposal on X (formerly Twitter), emphasized the growing trend of businesses embracing Bitcoin. The NCPPR also pointed to companies like MicroStrategy and Tesla. MicroStrategy has led the trend, holding over 402,000 Bitcoin—currently worth over $40 billion—as its primary treasury reserve asset, according to data.
Amazon has dipped its toes into blockchain technology through its managed services and by hiring blockchain and cryptocurrency experts. However, the company has yet to accept cryptocurrency payments or allocate digital assets to its balance sheet. Analysts believe a Bitcoin fund from Amazon could pave the way for a significant shift, potentially influencing other large corporations like Apple.
"First Microsoft, now Amazon. Apple will be next... then all the boardrooms," a Bitcoin commentator added.
Binance co-founder Changpeng Zhao (CZ) also joined the discussion, calling for Amazon to accept Bitcoin payments. However, an X (Twitter) user offered a contrasting view.
"What most [shareholders] don't realize is that Amazon has $88 billion in cash, but also $67 billion in debt and $87 billion in lease obligations. The company needs cash to operate day-to-day. The company's net capital is minimal compared to its revenue and market capitalization," the researcher argued.
They predict that the management team will likely respond with indifference or apathy to the proposal, which will be discussed at the 2025 annual shareholder meeting.
Microsoft Also in the Spotlight for Bitcoin Reserve Fund
Meanwhile, Amazon is not the only tech giant facing pressure to embrace Bitcoin. Microsoft shareholders will vote on a similar proposal at their annual meeting on December 10. However, Microsoft's management has advised shareholders to reject the proposal.
Specifically, the board has clarified its recommendation against the proposal, arguing that it is "unnecessary." They note that financial strategies, including asset allocation in the treasury, are being continuously reviewed. However, many predict the proposal will pass, based on the weight of BlackRock's investment, the second-largest shareholder in Microsoft, after Vanguard.
"Guess who's the second-largest shareholder of Microsoft? Guess who's behind the Bitcoin ETFs?" Terrence Michael, author of the Proof of Money teased.
MicroStrategy CEO Michael Saylor has also made a bold proposal to Microsoft. He argued that a strong Bitcoin strategy could add nearly $5 trillion to the company's market capitalization. Meanwhile, the video platform Rumble recently gained attention for establishing a Bitcoin reserve fund.
MicroStrategy's Michael Saylor, who has been a vocal advocate for institutional Bitcoin adoption, is believed to have inspired this move.
"It took Rumble only 6 days to adopt Bitcoin as a reserve asset after talking to Michael Saylor," Bitcoin supporter Nikolaus Hoffman commented.
These developments come against the backdrop of growing momentum for Bitcoin as a treasury reserve asset. Concerns about inflation and fiat currency devaluation are driving this trend.
Tesla's prominent Bitcoin purchases in 2021 and MicroStrategy's ongoing investments have set a precedent. The timing of these proposals reflects broader macroeconomic concerns, as the Federal Reserve signals continued monetary tightening.
