Key Highlights
- Shareholders propose Amazon allocate 5% of its $88B in cash to Bitcoin, citing inflation risks.
- MicroStrategy’s 537% stock outperformance after adopting Bitcoin is the inspiration.
- Proposal arrives ahead of Microsoft’s own vote on a Bitcoin strategy.
Paradisers! Could Amazon’s next big delivery be a treasure trove of Bitcoin? Shareholders of the retail giant are urging the company to take a bold step into crypto territory by allocating part of its massive $88 billion cash reserve into Bitcoin. The pitch? Long-term value and protection against inflation.
Bitcoin as a Hedge Against Inflation
In a letter from the National Center for Public Policy Research, shareholders didn’t mince words: Amazon’s cash holdings are “sitting ducks” for inflation’s relentless attack. While the official inflation rate averaged 0.95% over the past four years, the think tank claimed real inflation is nearly double, suggesting Bitcoin could be the antidote.
Their proposal? Conduct an assessment to see if putting just 5% of Amazon’s assets into Bitcoin could bolster shareholder value. And they have receipts to back it up: Bitcoin has grown 131% over the past year, leaving corporate bonds eating its dust with a 126% lag.
MicroStrategy’s Success is Amazon’s Blueprint
Shareholders pointed to MicroStrategy’s 537% stock rally after it adopted a Bitcoin-focused treasury strategy, outpacing Amazon’s own performance. They also name-dropped Bitcoin trailblazers like Tesla and Block (formerly Square), and even BlackRock, Amazon’s second-largest shareholder, which operates the world’s largest Bitcoin ETF.
“If they can do it, why can’t Amazon?” seems to be the underlying sentiment.
But What About Volatility?
Addressing concerns about Bitcoin’s infamous ups and downs, the shareholders argued that diversifying Amazon’s balance sheet with Bitcoin offers inflation protection without taking on excessive volatility. “Even a modest allocation,” they said, “could yield significant long-term benefits.”
Microsoft’s Vote Looms Large
The proposal comes as Amazon’s rival, Microsoft, prepares to vote on a similar Bitcoin strategy during its December 10 shareholders meeting. Microsoft’s pitch even features a three-minute presentation from MicroStrategy Chairman Michael Saylor, who predicted that embracing Bitcoin could boost Microsoft’s market cap by $5 trillion.
Price Action and Market Buzz
Bitcoin was trading at $99,447.77 at the time of writing, slightly down by 0.93% over the last 24 hours. Meanwhile, Amazon shares closed 2.94% higher at $227.03 in Friday’s session.
Amazon has built its empire by staying ahead of the curve. But will it embrace Bitcoin as the next frontier in wealth preservation? Shareholders and the crypto world will be watching Bezos & Co. closely for their next move.
