Amazon Shareholders Push for Minimum 5% Bitcoin Allocation

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What to know:

  • Amazon has a fiduciary responsibility to diversify into assets like BTC that outperform bonds, the shareholder proposal submitted by National Center for Public Policy Research said.
  • The company’s present asset mix of cash, cash equivalents and bonds isn’t adequately protecting the shareholder value, the proposal added.

As a seasoned researcher with over two decades of experience under my belt, I’ve seen the market ebb and flow like the tides. I’ve witnessed the rise and fall of giants, and I’ve learned that adaptability is the key to survival.

Shareholders of Amazon (AMZN) are advocating for the company to follow in the footsteps of MicroStrategy (MSTR) by diversifying their reserves into Bitcoin (BTC), as a means to combat inflation and enhance shareholder worth.

Though Bitcoin’s value can fluctuate greatly, similar to how Amazon stock has at times in the past, it is the duty of corporations to prioritize both short-term and long-term shareholder profits. Investing in Bitcoin as a diversification strategy addresses this challenge without exposing the company to excessive volatility, as suggested by the National Center for Public Policy Research (NCPPR) in a recent proposal.

“At minimum, Amazon should evaluate the benefits of holding some, even just 5%, of its assets in Bitcoin,” the proposal added.

This year, Bitcoin, the most valuable cryptocurrency, has skyrocketed by an impressive 134%, reaching over $100,000. This remarkable growth outperforms every major investment such as gold and the S&P 500. Interestingly, shares in MicroStrategy, a company that holds Bitcoin, have experienced even greater increases, surging more than 500% compared to Amazon’s 49% increase.

As a crypto investor, I’ve noticed the significant outperformance of MSTR, boosted by companies like Tesla and Block adopting Bitcoin. Moreover, it has been underscored that as an online retailer, they have a responsibility to consider long-term potential over short-term market fluctuations in assets such as Bitcoin. Interestingly, these digital assets, unlike bonds, tend to appreciate more, making them a promising addition to their Treasury.

By the close of Q3, I found myself holding a staggering $585 billion in total assets as a crypto investor. Out of this colossal sum, about $88 billion was cash reserves, cash equivalents, and marketable securities such as Treasury notes, government and corporate bonds from foreign entities. However, the current asset composition appears insufficient to safeguard shareholder value according to a recent proposal.

Last month, the NCPPR submitted a similar shareholder from Microsoft shareholders, urging the tech giant to diversify into bitcoin. Microsoft shareholders are scheduled to vote on their bitcoin consideration proposal on Dec. 10.

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2024-12-09 08:19