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Amazon (NASDAQ: AMZN) is facing growing pressure from shareholders to embrace Bitcoin (BTC) as part of its financial strategy. The push comes on the heels of Bitcoin’s historic rally past $100,000, outperforming nearly all major assets this year.
Shareholders, led by the National Center for Public Policy Research (NCPPR), are advocating for Amazon to allocate a portion of its reserves to Bitcoin, taking a page from MicroStrategy’s (MSTR) highly publicized playbook.
The Shareholder Proposal
The NCPPR’s proposal argues that adopting Bitcoin could help Amazon:
- Combat Inflation: With BTC often referred to as “digital gold,” it can serve as a hedge against fiat currency depreciation.
- Boost Shareholder Value: Bitcoin has surged 134% this year, while MicroStrategy, which holds over 160,000 BTC, has seen its stock rise more than 500% compared to Amazon’s 49% year-to-date growth.
- Diversify Reserves: Holding even 5% of reserves in BTC could complement Amazon’s current mix of Treasury notes, foreign government bonds, and corporate bonds.
“Though Bitcoin is volatile, corporations have a responsibility to maximize shareholder value in the long and short term,” the proposal states.
At the end of Q3 2024, Amazon reported $585 billion in total assets, including $88 billion in cash and marketable securities. Shareholders argue this asset mix doesn’t adequately protect against inflation or capitalize on Bitcoin’s long-term appreciation potential.
The MicroStrategy Effect
MicroStrategy’s Bitcoin-focused strategy has made headlines since 2020, when it began converting significant portions of its reserves into BTC. This approach has not only amplified its market value but also positioned the company as a leader in corporate Bitcoin adoption.
Amazon shareholders now see MicroStrategy’s strategy as a blueprint for boosting their own stock’s performance, especially as more corporations, including Tesla and Block, add Bitcoin to their balance sheets.
Why Now?
Bitcoin recently crossed the $100,000 threshold, bolstered by:
- Increased institutional adoption
- Regulatory optimism, including the possible approval of a Bitcoin spot ETF
- Geopolitical uncertainty driving demand for decentralized assets
As Bitcoin continues to outperform traditional assets like gold and the S&P 500, Amazon shareholders see an opportunity to capitalize on the momentum.
Is Amazon Ready for Bitcoin?
Amazon has yet to publicly embrace cryptocurrency, but its actions hint at interest:
- Patent Filings: Amazon has filed patents related to blockchain technology, signaling a potential future role in crypto innovation.
- AWS Blockchain Services: Amazon Web Services already supports blockchain solutions, helping clients integrate decentralized technologies.
- Crypto Payments Rumors: Speculation about Amazon accepting Bitcoin as payment has swirled for years, though no official announcements have been made.
The proposal also points to fiduciary duty, urging Amazon to explore assets like Bitcoin, which historically outperform bonds over the long term.
Other Tech Giants Watching
Amazon isn’t the only company facing Bitcoin-related proposals. Last month, the NCPPR submitted a similar request to Microsoft shareholders, who will vote on the matter on Dec. 10.
With tech giants like Microsoft and Apple under similar pressure, corporate Bitcoin adoption could accelerate if more companies follow in MicroStrategy’s footsteps.
What’s Next?
Amazon’s board will likely review the proposal ahead of shareholder votes in early 2025. If the motion gains traction, it could mark a turning point for Bitcoin’s mainstream acceptance in corporate finance.
While Bitcoin remains a volatile asset, the enthusiasm from Amazon shareholders underscores a growing belief in its potential as a long-term store of value.
Amazon Urged to Invest in Bitcoin: Could It Follow MicroStrategy’s Lead? was originally published in The Capital on Medium, where people are continuing the conversation by highlighting and responding to this story.
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