A group of Amazon shareholders has called on the company to diversify its treasury holdings by allocating at least 5% of its assets into Bitcoin. The proposal, submitted by the National Center for Public Policy Research (NCPPR), encourages Amazon to consider Bitcoin as a financial hedge and a potential value driver.
Why Bitcoin Makes Sense for Amazon
The proposal highlights the potential benefits of Bitcoin in safeguarding Amazon’s $88 billion in cash and short-term assets against inflation. The NCPPR expressed concerns about the Consumer Price Index (CPI), arguing that it may underestimate the true inflation rate, which could be much higher than reported. As cash continues to lose value and bond yields fail to keep up with inflation, Bitcoin is presented as a more resilient alternative.
Bitcoin’s Strong Performance Supports the Case
The performance of Bitcoin further strengthens the argument. Over the past year, Bitcoin has risen by 131%, significantly outpacing corporate bonds, which saw an average increase of 126%. Despite Bitcoin’s volatility, the proposal pointed out that Amazon’s stock has also faced fluctuations throughout its history. Yet, these fluctuations have not hindered the company from maximizing long-term shareholder value.
A 5% Bitcoin Allocation Could Enhance Shareholder Value
The NCPPR urges Amazon to evaluate Bitcoin as a viable treasury asset, suggesting that even a modest 5% allocation could enhance shareholder value. By diversifying its balance sheet, Amazon could protect itself from inflation risks without exposing itself to excessive volatility.
Aligning with Fiduciary Responsibilities
The NCPPR contends that this move aligns with Amazon’s fiduciary responsibility to secure and grow shareholder wealth over time. The proposal calls for the company’s board to assess whether adding Bitcoin to the treasury would serve the long-term interests of shareholders.
Expanding Bitcoin Use at Amazon
Beyond treasury diversification, industry leaders have also suggested that Amazon integrate Bitcoin payments into its operations. Binance co-founder Changpeng Zhao proposed that Amazon could build a Bitcoin reserve by accepting payments in the cryptocurrency. While Zhao acknowledged Bitcoin’s slower transaction speeds, he emphasized its advantages over traditional financial systems, particularly its seamless functionality.
Incentivizing Bitcoin Payments
Dennis Porter, CEO and co-founder of the Satoshi Act Fund, echoed Zhao’s suggestion. He proposed that Amazon incentivize Bitcoin payments with discounts, which could help the company establish a “Strategic Bitcoin Reserve” while encouraging broader crypto adoption among its customers
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