Amazon is facing pressure from its shareholders to follow in the footsteps of MicroStrategy and diversify its reserves by investing in Bitcoin. The proposal, shared by the National Center for Public Policy Research, emphasizes the need for Amazon to maximize shareholder value over the long-term by considering the benefits of holding at least 5% of its assets in Bitcoin.
Bitcoin, the leading cryptocurrency, has experienced significant growth this year, outperforming traditional assets like gold and the S&P 500. Companies like Tesla and Block have already embraced Bitcoin, and shareholders believe Amazon should also explore this option to protect shareholder value.
At the end of the third quarter, Amazon had $585 billion in total assets, with $88 billion in cash, cash equivalents, and marketable securities. However, the current asset mix is not effectively safeguarding shareholder value, according to the proposal.
The proposal highlights MicroStrategy’s success in holding Bitcoin and points to the significant gains the company has seen compared to Amazon. Shareholders believe that Amazon has a fiduciary duty to look beyond short-term volatility and consider assets like Bitcoin, which have the potential for higher appreciation than bonds.
This call for diversification into Bitcoin is not unique to Amazon, as Microsoft shareholders are also set to vote on a similar proposal in December. The growing interest in Bitcoin as a store of value and inflation hedge is prompting companies to rethink their investment strategies and explore new opportunities for growth.
In conclusion, Amazon’s shareholders are urging the company to evaluate the benefits of holding Bitcoin as part of its asset portfolio to protect shareholder value and beat inflation in the long run. By diversifying into Bitcoin, Amazon could potentially boost shareholder value and position itself for future growth in the rapidly evolving digital economy.