Amazon Faces Shareholder Call to Add Bitcoin to Balance Sheet

Amazon shareholders are calling on the company to invest at least 5% of its assets in Bitcoin through a proposal from the National Center for Public Policy Research (NCPPR).

Podcaster Tim Kotzman shared the proposal on X, which pointed out Bitcoin's superior performance over corporate bonds and referencing similar investments by companies like MicroStrategy and Tesla.

The think tank’s letter criticizes the Consumer Price Index (CPI), which shows a 4.95% inflation rate, as an unreliable measure of currency debasement. It argues the true inflation rate could be twice as high. Further, the letter warned that this undermines Amazon’s $88b in cash and short-term assets. To protect shareholder value, it recommended using Bitcoin as a hedge against inflation.

"Amazon should – and perhaps has a fiduciary duty to – consider adding assets to its treasury that appreciate more than bonds, even if those assets are more volatile shortterm," the National Center for Public Policy Research wrote.

Microsoft Rejects Bitcoin Investment Push

The NCPPR's proposal aligns with a broader push for institutional Bitcoin adoption. In October, it urged Microsoft to invest in Bitcoin through a similar letter. However, Microsoft advised shareholders to reject it, stating management already evaluates such matters.

The proposal will be discussed this week at Microsoft's annual meeting on Dec. 10.

Amazon Invests in Blockchain, But Has So Far Avoided Crypto

Meanwhile, Amazon has not confirmed plans to hold cryptocurrency on its balance sheet. However, it offers a managed blockchain service through Amazon Web Services and has posted job listings for digital currency and blockchain experts. Despite this, Amazon still does not accept cryptocurrency as payment on its shopping platform.

MicroStrategy led the way in adopting Bitcoin as its primary treasury reserve asset among public companies. In Aug. 2020, it began buying Bitcoin to guard against inflation and economic risks. According to Bitcoin Treasuries, the company now holds 402.1k Bitcoin, worth over $40b.

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