Shareholders of amazon.com, Inc. (NASDAQ: AMZN) have filed a proposal urging the $2.3 trillion tech conglomerate to consider adding bitcoin to its balance sheet. The measure, introduced by the National Center for Public Policy Research and scheduled for discussion at amazon's 2025 annual shareholder meeting in April, asks the company's board of directors to evaluate whether incorporating btc as a treasury asset would serve the long-term best interests of shareholders.
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In the proposal, the shareholders emphasize that amazon's current treasury management may be insufficient in the face of current inflation. As stated in the presentation: “Companies that invest their assets wisely can (and often do) increase shareholder value more than more profitable companies that do not.”
According to supporting materials, amazon's current treasury includes approximately $88 billion in cash, cash equivalents and marketable securities, out of a total of $585 billion in assets (as of September 30, 2024). The authors of the proposal argue that inflationary pressures and subinflationary bond yields are eroding the purchasing power of these holdings.
They cite an average annual US Consumer Price Index (CPI) rate of 4.95% over the past four years, sometimes peaking at 9.1%, while suggesting that “in reality, the true inflation rate is significantly higher.” In this context, the filing suggests that amazon has a “fiduciary duty” to consider inflation-resistant assets.
Shareholders point to bitcoin's historical returns to bolster their case. They note that as of December 6, 2024, the price of btc increased by 131% year-over-year, outperforming corporate bonds “by 126% on average.”
Over a five-year horizon, the price of bitcoin rose 1,246%, outperforming corporate bond yields by an estimated 1,242% over that period. “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 in the short term,” the proposal states.
The document also references other publicly traded companies that hold btc. MicroStrategy, an early adopter, saw its stock outperform amazon's by 537% from a year earlier, according to the proposal.
Additionally, institutional players such as BlackRock and Fidelity (both with significant stakes in amazon) have introduced bitcoin-focused investment products for their clients. Shareholders further suggest that US government policy could shift towards a “strategic bitcoin reserve” by 2025, possibly signaling broader mainstream acceptance.
“Shareholders request that the Board conduct an evaluation to determine whether adding bitcoin to the Company's treasury is in the best long-term interests of shareholders,” the proposal concludes.
This push at amazon comes on the heels of a similar initiative at Microsoft. As Bitcoinist reported, Microsoft (MSF) shareholders will vote on December 10 on a proposal to include bitcoin in its treasury as a reserve asset. However, analysts say the chances of approval are low after Microsoft's board of directors recommended a “no” vote.
At the time of publication, btc was trading at $99,136.
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