Bitcoin could soon play a significant role in Amazon’s financial strategy, as shareholders of the online retail giant are advocating for the adoption of the cryptocurrency in its asset portfolio. This move by Amazon would align with other major corporations exploring the inclusion of Bitcoin in their financial reserves.
Shareholders are urging Amazon to consider adding Bitcoin to its balance sheet, citing the cryptocurrency as a potential long-term value enhancer and a hedge against inflation. The National Center for Public Policy Research (NCPPR) has recommended that Amazon evaluate the benefits of allocating a portion of its financial reserves to hold Bitcoin, with the goal of increasing shareholder value and protecting against inflation.
The NCPPR submitted a shareholder proposal to Amazon, urging the company to assess the advantages of integrating Bitcoin into its treasury during the 2025 annual shareholders’ meeting. The think tank suggested that Amazon could allocate up to 5% of its $585 billion assets to Bitcoin, emphasizing the need for corporations to prioritize long-term shareholder value over short-term gains.
Despite Bitcoin’s volatility, the researchers argued that including the cryptocurrency in Amazon’s balance sheet could diversify its assets and mitigate some of the associated risks. With inflation rates on the rise in the US, traditional assets like cash and bonds may no longer be the most effective means of preserving Amazon’s wealth. The NCPPR pointed out that Bitcoin has outperformed traditional assets in terms of value appreciation, with the digital asset experiencing a significant surge in value in recent years.
Data indicates that Bitcoin’s value has skyrocketed by 1,200% in the last five years, presenting a compelling case for Amazon to consider holding the cryptocurrency as a means of safeguarding its profits and potentially generating higher returns in the future. Former Binance executive Changpeng Zhao expressed support for the proposal, suggesting that Amazon could further bolster its Bitcoin holdings by incorporating cryptocurrency payment options on its platform.
If Amazon were to embrace Bitcoin as part of its treasury strategy, it could mark a significant milestone in the mainstream adoption of cryptocurrencies by major corporations. As the debate around the role of digital assets in traditional finance continues to evolve, Amazon’s potential integration of Bitcoin could have far-reaching implications for the cryptocurrency market and the broader financial industry.