Key Takeaways
- Amazon shareholders propose a 5% Bitcoin treasury allocation.
- Bitcoin has surged 134% this year, outpacing major assets.
- A similar Bitcoin proposal for Microsoft faces a vote soon.
Amazon shareholders, led by the National Center for Public Policy Research (NCPPR), are urging the company to allocate at least 5% of its assets to Bitcoin.
The proposal argues that Amazon’s current asset mix of cash, cash equivalents, and bonds is insufficient for preserving shareholder value in an inflationary environment.
Bitcoin’s performance
The NCPPR emphasized Bitcoin’s strong performance, noting it has surged 134% this year to surpass $100,000, outperforming traditional assets like gold and the S&P 500.
The proposal also highlighted the exceptional performance of Bitcoin-holding companies like MicroStrategy, whose stock has risen over 500% this year compared to Amazon’s 49% growth.
NCPPR’s proposal stated:
Though Bitcoin is currently a volatile asset – as Amazon stock has been at times throughout its history – corporations have a responsibility to maximize shareholder value over the long-term as well as the short-term.
Even 5%
It further added that a modest allocation of even 5% would enhance Amazon’s Treasury without significantly increasing risk.
Amazon’s asset base at the end of Q3 totaled $585 billion, with $88 billion in cash, cash equivalents, and bonds.
Shareholders believe the inclusion of Bitcoin could better protect the company’s reserves and align with strategies adopted by Tesla, Block, and others.
Last month, the NCPPR submitted a similar Bitcoin proposal for Microsoft, which is set for a shareholder vote on December 10.
