Amazon shareholders are urging the tech giant to allocate a portion of its $88 billion in cash and short-term assets to Bitcoin. This push is based on a proposal from the National Center for Public Policy Research (NCPPR).
This move comes as Bitcoin (BTC) is gaining increasing attention among companies as a hedge against inflation.
'Actual inflation rate 10%... Cash value must be preserved by buying BTC'
The NCPPR warned in its proposal that inflation could erode the purchasing power of Amazon's substantial cash holdings. It criticized the Consumer Price Index (CPI) as an unreliable metric, suggesting the actual inflation rate could be close to 10%. The letter emphasized that Bitcoin has historically outperformed traditional corporate bonds, despite its short-term volatility.
"Amazon - and it may have a fiduciary duty - should consider adding to its treasury an asset that has historically appreciated more than bonds, even if it is more volatile in the short term." - NCPPR proposal.
Podcaster Tim Kotzman shared the proposal on X (formerly Twitter), highlighting the increasing trend of corporate Bitcoin adoption. The NCPPR also cited companies like MicroStrategy and Tesla. MicroStrategy holds over 402,000 BTC, valued at over $40 billion, as shown in Bitcoin treasury data.
Amazon has addressed blockchain technology through management services and job postings for blockchain and cryptocurrency experts, but has not adopted cryptocurrency payments or allocated digital assets to its balance sheet. Analysts suggest that Amazon's Bitcoin treasury move could signal a significant change that could influence other large corporations like Apple.
"First Microsoft, now Amazon. Next Apple... then every board." - Bitcoin commentary account added.
Binance co-founder CZ urged Amazon to adopt Bitcoin payments, but an X (Twitter) user presented a counterargument.
"What most [shareholders] don't realize is that while Amazon has $88 billion in cash, it also has $67 billion in debt and $87 billion in lease liabilities. Cash is needed for day-to-day operations. The company's net cash is minuscule compared to its revenue and market cap." - Researcher suggested.
They expect a lukewarm or cold reception to the board proposal, which will be discussed at the 2025 annual shareholder meeting.
Microsoft's Bitcoin holdings draw attention
Meanwhile, Amazon is not the only major tech company facing pressure to adopt Bitcoin. Microsoft shareholders are set to vote on a similar proposal at their annual meeting on December 10th. However, Microsoft's management has recommended that shareholders reject the proposal.
Specifically, the board clearly opposed the proposal, arguing that it is "unnecessary" as financial asset allocation, including the company's treasury, is already under continuous review. However, many expect the proposal to pass, citing the weight of BlackRock's investment, as the asset manager is Microsoft's second-largest shareholder.
"Do you know who the second-largest shareholder of Microsoft is? Do you know who made the Bitcoin ETF happen?" - Terence Michael, author of the Bitcoin book Proof of Money, joked.
MicroStrategy's chairman, Michael Saylor, has made a bold proposal to Microsoft. He argues that a strong Bitcoin strategy could increase the company's market capitalization by nearly $5 trillion. Meanwhile, the video platform Rumble recently drew attention for establishing a Bitcoin treasury.
Michael Saylor of MicroStrategy is known as a strong advocate for institutional Bitcoin adoption, and is believed to have inspired this movement.
"Rumble adopted Bitcoin as a reserve asset in just 6 days after talking to Michael Saylor." - Bitcoin supporter Nikolaus Hoffman mentioned.
These developments are occurring amid growing momentum for Bitcoin's role as a treasury reserve asset, driven by concerns about inflation and fiat currency devaluation.
The precedent set by Tesla's large-scale Bitcoin purchase in 2021 and MicroStrategy's ongoing investments has paved the way. The timing of these proposals reflects broader macroeconomic concerns as the Federal Reserve signals continued monetary tightening.
