- Shareholders propose Amazon allocate 5% of assets to Bitcoin as a hedge against inflation.
- NCPPR highlights Bitcoin’s superior performance over bonds, urging Amazon to adopt it for asset diversification.
- Amazon’s board to decide if shareholders vote on the Bitcoin proposal at the April 2025 annual meeting.
A group of Amazon shareholders has proposed that the company allocate 5% of its assets to Bitcoin. This suggestion, submitted by the National Center for Public Policy Research (NCPPR), will be reviewed at the April 2025 shareholder meeting.
The proposal points out that Bitcoin is doing very well when compared to typical investments such as corporate bonds. For example, Bitcoin performed 131% better than the past year, surpassing bonds with 126%. The letter also mentions companies like MicroStrategy and Tesla that have been able to integrate Bitcoin into their corporate treasuries.
Inflation Risks Drive Bitcoin Appeal
The NCPPR argues that current inflation measures underestimate true currency devaluation. While the Consumer Price Index (CPI) reports inflation at 4.95%, the think tank believes the actual rate may be closer to 10%. According to the letter, this erodes the purchasing power of Amazon’s $88 billion in cash reserves. The proposal suggests Bitcoin as a hedge to protect shareholder value against inflation.
Amazon has yet to issue a public response. However, the company has previously explored blockchain technology for supply chain management, showing a general interest in digital innovation.
Broader Push for Bitcoin Adoption
This is not the first time the NCPPR has urged major corporations to consider Bitcoin. In October, the think tank submitted a similar proposal to Microsoft. Microsoft’s board advised against the move, citing its existing approach to diversified investments, which includes Bitcoin. Shareholders will vote on the proposal on December 10, 2024.
Next Steps for Amazon
Amazon’s board of directors will review the proposal and decide whether to include it in the company’s proxy statement. If included, shareholders will vote on the proposal during the 2025 annual meeting. Amazon’s board typically issues voting recommendations for such proposals.
The outcome is likely to hinge on top shareholders like Black Rock, Vanguard Group and JPMorgan. Meanwhile, Bitcoin’s institutional adoption continues to grow.
