Amazon Shareholders Advocate for 5% Bitcoin Investment
A recent proposal suggests Amazon should add Bitcoin to its treasury to enhance shareholder value and counter inflation.
What to Know:
- Amazon has a fiduciary responsibility to diversify into assets like Bitcoin that outperform bonds, according to the shareholder proposal from the National Center for Public Policy Research.
- The existing asset mix of cash, cash equivalents, and bonds is inadequate for protecting shareholder value.
Key Points:
Amazon's shareholders are advocating for the company to follow the example of MicroStrategy by diversifying its reserves into Bitcoin (BTC).
"Though Bitcoin is currently a volatile asset – similar to how Amazon stock has fluctuated throughout its history – corporations are obligated to maximize shareholder value in both the short and long term. Including Bitcoin in their balance sheets could solve this dilemma without taking on excessive volatility," the proposal states. Read the proposal here.
At a minimum, the proposal suggests Amazon evaluate the benefits of holding just 5% of its assets in Bitcoin.
Bitcoin has increased by 134% this year, surpassing the $100,000 mark, making it outshine several major assets including Gold and the S&P 500. Meanwhile, shares of Bitcoin investor MicroStrategy have grown by over 500%, overshadowing Amazon's own stock increase of 49%.
At the end of Q3, Amazon reported total assets of $585 billion, where $88 billion comprised cash and cash equivalents, raising concerns over their capacity to safeguard shareholder value.
In parallel, the National Center has submitted similar proposals on behalf of Microsoft shareholders, with a vote scheduled on December 10.
