Amazon Shareholders Propose Bitcoin Treasury To Hedge Inflation

Amazon shareholders are urging the tech giant to allocate part of its $88 billion in cash and short-term assets to Bitcoin. The push follows a proposal from the National Center for Public Policy Research (NCPPR).

This move comes as Bitcoin (BTC) increasingly gains traction among corporations as a hedge against inflation.

Amazon Shareholders Advocate for Bitcoin Treasury

In its proposal, the NCPPR warned that inflation could erode the purchasing power of Amazon’s substantial cash reserves. It criticized the Consumer Price Index (CPI) as an unreliable gauge, suggesting the real inflation rate may be closer to 10%. The letter emphasized that Bitcoin, despite its short-term volatility, has historically outperformed traditional corporate bonds.

“Amazon should – and perhaps has a fiduciary duty to – consider adding assets to its treasury that appreciate more than bonds, even if those assets are more volatile short term,” the NCPPR wrote in the proposal.

Podcaster Tim Kotzman, who shared the proposal on X (formerly Twitter), highlighted the growing corporate trend toward Bitcoin adoption. The NCPPR also pointed to companies like MicroStrategy and Tesla. MicroStrategy has led the charge, holding over 402,000 Bitcoin—currently valued at over $40 billion—as its primary treasury reserve asset, data on Bitcoin Treasuries shows.

Amazon has dabbled in blockchain technology through its managed services and job listings for blockchain and cryptocurrency experts. However, it has yet to adopt cryptocurrency payments or allocate digital assets to its balance sheet. Analysts suggest that a Bitcoin treasury move by Amazon could signal a seismic shift, potentially influencing other corporate giants like Apple.

“First Microsoft, now Amazon. Apple is next…then every single boardroom,” a Bitcoin commentary account added.

Binance co-founder Changpeng Zhao (CZ) weighed in on the debate, urging Amazon to accept Bitcoin payments.  Nevertheless, a user on X (Twitter) has posed a contrarian perspective.

“What most [shareholders] do not realize is that Amazon has $88 billion of cash, but also has $67 billion in debt and $87 billion of lease liabilities. It requires cash to run its daily operations. The company’s net cash is minimal compared to sales and market cap,” the researcher posed.

They anticipate a rather lukewarm or cold response to the board’s proposal, which will be discussed during the 2025 annual shareholder meeting.

Microsoft is Also in the Bitcoin Treasury Spotlight

Meanwhile, Amazon is not the only major tech company facing pressure to adopt Bitcoin. Microsoft shareholders will vote on a similar proposal at its annual meeting on December 10. However, Microsoft’s management has advised shareholders to reject the proposal.

Specifically, the board clarified its recommendation against the proposal, arguing that it is “unnecessary.” It noted that financial strategies, including treasury asset allocations, are already under ongoing review. Nevertheless, many expect the proposal will pass, citing the heft of BlackRock’s investment as the second-largest investor at Microsoft, after Vanguard.  

“Guess who Microsoft’s second-largest shareholder is? Guess who made the Bitcoin ETFs happen?” Terrence Michael, author of the Bitcoin book Proof of Money, quipped.

MicroStrategy executive chair Michael Saylor also presented a bold proposal to Microsoft. He argued that a strong Bitcoin strategy could add nearly $5 trillion to its market capitalization. Meanwhile, video platform Rumble recently made headlines for establishing a Bitcoin treasury.

MicroStrategy’s Michael Saylor, who has been a vocal advocate for institutional Bitcoin adoption, reportedly inspired the move.

“It took just 6 days for Rumble to adopt Bitcoin as a reserve asset after talking with Michael Saylor,” Bitcoin proponent Nikolaus Hoffman remarked.

These developments come amid a growing momentum for Bitcoin’s role as a treasury reserve asset. Concerns over inflation and fiat currency debasement drive this.

Tesla’s high-profile Bitcoin purchase in 2021 and MicroStrategy’s continued investments have set a precedent. The timing of these proposals reflects broader macroeconomic concerns, with the Federal Reserve signaling continued monetary tightening.

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