Amazon Shareholders Propose Bitcoin Treasury Allocation

Amazon shareholders are calling on the company to diversify its treasury holdings by allocating 5% of its assets to Bitcoin. The proposal, submitted by the National Center for Public Policy Research (NCPPR), argues that Bitcoin could serve as a financial hedge and enhance shareholder value.

Bitcoin as a Hedge Against Inflation

The proposal highlights concerns about inflation and its potential impact on Amazon’s $88 billion in cash and short-term investments. It critiques the Consumer Price Index (CPI) as an understated measure of inflation, suggesting actual rates may be twice as high. With traditional assets like bonds failing to keep pace with inflation, Bitcoin is presented as a resilient alternative.

Bitcoin’s recent performance bolsters its case. Over the past year, the cryptocurrency has delivered a 131% return, significantly outpacing corporate bonds, which averaged a 126% lower return. Although Bitcoin is known for its volatility, the proposal points out that Amazon’s stock has also faced fluctuations over time, yet the company has consistently delivered long-term value to shareholders.

The NCPPR asserts that even a modest 5% allocation to Bitcoin could enhance Amazon’s balance sheet, hedge against inflation, and align with the company’s fiduciary responsibility to grow shareholder wealth.

Calls for Bitcoin Integration

Beyond treasury diversification, some industry leaders suggest Amazon adopt Bitcoin as a payment option. Binance co-founder Changpeng Zhao proposed building a Bitcoin reserve by accepting payments in the digital asset. While acknowledging potential challenges like slower transaction speeds, Zhao emphasized Bitcoin’s benefits over traditional finance systems.

Dennis Porter, CEO and co-founder of the Satoshi Act Fund, recommended that Amazon incentivize Bitcoin payments by offering discounts. Porter argued that this strategy could help Amazon establish a "Strategic Bitcoin Reserve" while fostering broader crypto adoption among its customers.

By embracing Bitcoin in its treasury and payment systems, the proposal suggests Amazon could position itself as a leader in the digital asset space, driving innovation while safeguarding shareholder value.