Amazon shareholders are urging the company to allocate 5% of its assets to Bitcoin, citing its superior performance over traditional financial instruments like corporate bonds. The proposal, spearheaded by the National Center for Public Policy Research (NCPPR), aims to protect shareholder value against inflation and currency debasement.
Shareholder Proposal Highlights Bitcoin’s Potential
Podcaster Tim Kotzman shared the proposal on X, showcasing Bitcoin’s impressive long-term returns and referencing investments by industry leaders like MicroStrategy and Tesla.
The NCPPR criticized the Consumer Price Index (CPI), which reports a 4.95% inflation rate, arguing it underestimates the actual impact of currency devaluation. The letter suggested that inflation could be twice as high, posing a risk to Amazon’s $88 billion in cash and short-term assets.
To mitigate this, the proposal urges Amazon to:
“Consider adding assets to its treasury that appreciate more than bonds, even if those assets are more volatile short-term.”
Bitcoin, according to the NCPPR, offers a strategic hedge against inflation while providing substantial growth potential.
Microsoft Rejects Similar Push for Bitcoin Adoption
This proposal aligns with a growing trend advocating for institutional adoption of Bitcoin. However, a similar effort aimed at Microsoft was met with resistance.
In October 2024, the NCPPR sent a letter urging Microsoft to invest in Bitcoin. The company’s management advised shareholders to reject the proposal, stating that investment decisions were already being adequately evaluated.
The matter will be revisited at Microsoft’s annual meeting on December 10.
Amazon’s Blockchain Investments
While Amazon has not committed to holding cryptocurrency on its balance sheet, the company is actively involved in blockchain technology.
Key initiatives include:
- Amazon Web Services (AWS) offering a managed blockchain service.
- Job listings seeking digital currency and blockchain experts.
Despite these advancements, Amazon has yet to accept cryptocurrency as payment on its e-commerce platform, a feature some industry leaders and customers continue to advocate for.
MicroStrategy: The Bitcoin Standard
MicroStrategy remains the benchmark for Bitcoin adoption among public companies. In August 2020, the company began acquiring Bitcoin as its primary treasury reserve asset to safeguard against inflation.
As of now, MicroStrategy holds 402,100 Bitcoin, valued at over $40 billion, demonstrating the potential benefits of long-term investment in cryptocurrency.
What’s Next for Amazon?
The push for Amazon to invest in Bitcoin reflects a broader movement toward institutional acceptance of cryptocurrency as a treasury asset. With its vast resources and influence, Amazon’s decision could significantly impact the adoption of Bitcoin and other digital assets across the corporate world.
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