Amazon Shareholders Propose Bitcoin Adoption for Treasury

By: Eva Baxter

Amazon is under pressure from a group of its shareholders to consider allocating a portion of its treasury to Bitcoin. This proposal, put forward by the National Center for Public Policy Research (NCPPR), suggests that at least 5% of Amazon's assets be converted into Bitcoin to safeguard against inflation and increase value for shareholders. The rationale for this shift comes from Bitcoin's significant appreciation over the past year, which has notably outpaced traditional financial instruments such as corporate bonds. The proposal points out that Bitcoin's returns were over 131% in the last year, making it an attractive option for managing Amazon's $88 billion cash reserves.

While concerns about Bitcoin's volatility persist, advocates highlight that Amazon's own stock has endured fluctuations, mirroring the inherent market dynamics. Yet, such volatility hasn't stopped Amazon from reaping substantial long-term gains. By exploring Bitcoin as a potential treasury asset, Amazon could effectively diversify its holdings and create a buffer against inflationary pressures. The shareholders emphasized the importance of the company aligning its strategy to enhance shareholder value without significantly increasing risk exposure.

Beyond treasury diversification, there is a push for Amazon to incorporate Bitcoin into its payment ecosystem. Industry leaders, including Binance co-founder Changpeng Zhao, recommend that Amazon could accumulate Bitcoin reserves by accepting it as a payment method. While acknowledging some operational challenges like Bitcoin's slower transaction speed, proponents believe in the currency's robustness compared to fiat counterparts. Satoshi Act Fund’s CEO Dennis Porter suggests that encouraging Bitcoin payments with discounts could not only boost Amazon's Bitcoin reserves but also promote broader crypto adoption among consumers.

This movement comes amid broader industry discussions as other tech giants such as Microsoft also examine similar proposals. The initiative to include Bitcoin as a strategic asset reflects a growing sentiment among shareholders and industry experts towards adopting more resilient financial strategies in the face of global economic uncertainties. By potentially leading with such a forward-thinking approach, Amazon may set a precedent for other major corporations in integrating cryptocurrencies into their financial frameworks.