Amazon Shareholders Suggest 5% Bitcoin Treasury Reserve Amid Microsoft’s Consideration of BTC Investment

• Amidst rising inflation, a think tank is urging Amazon to allocate 5% of its assets into Bitcoin, as Microsoft contemplates a similar BTC venture.

• This move reflects a growing sentiment among corporations to hedge against inflation by diversifying their asset portfolios with cryptocurrencies.

• The National Center for Public Policy Research stated, “Though Bitcoin is currently a volatile asset… corporations have a responsibility to maximize shareholder value over the long-term as well as the short-term.”

This article discusses a proposal by a think tank urging Amazon to adopt Bitcoin reserves, highlighting corporate strategies amidst inflation trends.

Amazon’s Consideration of Bitcoin Reserves Amid Inflation Concerns

On December 6, The National Center for Public Policy Research issued a shareholder proposal recommending Amazon to consider holding at least 5% of its assets in Bitcoin. This proposal is driven by the cryptocurrency’s recent performance, which has seen it not only surge to an all-time high but also attract attention as a potential inflation hedge.

Current Bitcoin Market Performance

As of the latest data from CoinGecko, Bitcoin is trading at $97,020, reflecting a slight decline of over 3% within the day. However, it remains impressive as it reached a peak of $103,679 last week. Moreover, over the last month, Bitcoin has appreciated by 27%, indicating strong market momentum despite its inherent volatility.

Shareholding Dynamics and Corporate Strategy

The potential implications of adopting a Bitcoin treasury reserve are significant for Amazon. A vote on the proposal is expected during the company’s annual meeting in spring, where the board will make a formal recommendation. This move is seen as crucial for Amazon’s long-term strategy, particularly in an inflationary environment marked by rising consumer prices.

Similar Moves by Other Corporations

Interestingly, this recommendation to Amazon is part of a broader trend as Microsoft is also evaluating a potential Bitcoin investment. A proposal aimed at incorporating Bitcoin into Microsoft’s balance sheet will be voted on shortly, with the board advising shareholders to reject the proposal.

Broader Economic Context and Corporate Performance

The economic backdrop is particularly relevant; U.S. inflation surged to 2.6% in October, compounded by the Federal Reserve’s recent policy shifts. While many firms face challenges from inflation, Amazon reported strong performance in Q3, with revenue reaching $158.9 billion—an 11% increase year-over-year. Profits during this period also climbed to a record $15.3 billion.

Conclusion

The proposal for Amazon to consider Bitcoin reserves signifies a pivotal moment in corporate finance strategy, illustrating how large organizations are adapting to inflationary pressures and exploring digital assets. As companies weigh the risks and benefits, shareholder decisions in the coming months could redefine asset management practices in the tech industry.