- A shareholder proposal has recommended that Amazon explore adding Bitcoin to its treasury holdings
- The proposal cites Bitcoin’s performance against inflation, highlighting its 1,246% appreciation over the past five years
- Proponents argue that diversifying Amazon’s balance sheet could protect shareholder value during periods of high inflation
Amazon shareholders have voted for the tech giant to investigate the viability of investing in Bitcoin as part of a treasury strategy. The results of the vote were revealed last night, with a majority of shareholders requesting that the Board “conduct an assessment to determine if adding Bitcoin to the Company’s treasury is in the best long-term interests of shareholders.” Such a move, were it to happen, would be even bigger than Tesla’s $1.5 billion bitcoin purchase in 2021.
Bitcoin’s Superior Performance Analysed
The National Center for Public Policy Research put the proposal to Amazon shareholders recently, underscoring the impact of inflation, noting, “Corporations have a fiduciary duty to protect shareholder value from debasement.” Amazon currently holds $88 billion in cash and short-term securities, which the group argues are losing value due to low bond yields and rising inflation rates.
In turn, it discussed the benefits of Bitcoin as a hedge to inflation, which are not insignificant; over the past year alone, Bitcoin appreciated by 131%, surpassing corporate bonds, which rose 126%. Over a five-year period, Bitcoin outperformed corporate bonds by over 1,242%. The report also points out that major institutional investors, such as BlackRock and Fidelity, are already embracing Bitcoin ETFs.
The report also noted that “More companies like Tesla and Block have also adopted Bitcoin as part of their treasury strategy,” highlighting MicroStrategy, which experienced a 537% increase in its stock price last year following its Bitcoin acquisitions.
Decision Time for Amazon
The result of the vote was positive for Bitcoiners, with Amazon’s Board told that it “must evaluate the benefits of diversifying its treasury holdings,” arguing that even a 5% allocation could make a significant difference. The National Center for Public Policy Research asserts that Bitcoin offers Amazon a chance to diversify without taking on excessive risk.
Shareholders are now tasked with evaluating the merits of this proposal ahead of the 2025 meeting:
Shareholders request that the Board conduct an assessment to determine if adding Bitcoin to the Company’s treasury is in the best long-term interest of shareholders.
Whether Amazon will heed this call remains to be seen, but the fact that the majority of shareholders advised the Board to at least investigate the possibility shows that Bitcoin’s purpose is finally becoming realised.
