Proposal Suggests Bitcoin Allocation for Amazon Assets
A group of Amazon investors is proposing that the company allocate a minimum of 5% of its assets to Bitcoin. The National Center for Public Policy Research (NCPPR) is behind this initiative to position Bitcoin as a strategic component within Amazon’s financial holdings.
According to Tim Kotzman, the proposal underscores Bitcoin’s value as a hedge against inflation and a method of diversification. It highlights Bitcoin’s strong performance compared to traditional assets like corporate bonds. Notably, MicroStrategy, a Bitcoin investor, has outperformed Amazon’s stock by an impressive 537% in the last year. This trend reflects a broader institutional trend towards Bitcoin adoption, with companies like Tesla and Block incorporating Bitcoin into their financial portfolios. Amazon’s main institutional shareholders, BlackRock and Fidelity, have even introduced Bitcoin ETFs for their clients, bolstering the digital asset’s significance.
The NCPPR’s communication urges Amazon’s board to evaluate whether including Bitcoin in its treasury assets aligns with the shareholders’ long-term interests. Despite the proposal’s importance, Amazon has not publicly responded. However, the tech giant has shown interest in blockchain technology, particularly in optimizing supply chain operations.
This proposal from the NCPPR mirrors a wider institutional push towards embracing Bitcoin. Earlier this year, a similar request was made to Microsoft, advising them to consider Bitcoin investments. Microsoft’s board recommended voting against it, mentioning their ongoing evaluation of various investable assets. The NCPPR cautioned that if Microsoft misses out on Bitcoin investments and its value rises, it could result in shareholder disputes.
The next phase of the NCPPR’s proposal involves Amazon’s board reviewing the initiative and considering whether to include it in the company’s proxy statement for the annual shareholders meeting scheduled for April 2025. If included, shareholders will vote on the proposal, with the board’s recommendation possibly influencing the outcome.
Major Amazon shareholders include financial giants such as Vanguard Group, BlackRock, State Street, Fidelity Management & Research, Geode Capital Management, and JPMorgan. Their combined influence could be pivotal in determining the vote’s result.
To summarize, the call for Amazon to allocate a portion of its assets to Bitcoin reflects the rising interest in cryptocurrency as a viable investment. As institutional players increasingly embrace digital assets, Amazon’s response will shape its financial strategy and could impact how Bitcoin is viewed in corporate asset allocation.
