The shareholders of Amazon propose a change of course: 5% of the reserves in Bitcoin to beat inflation

The shareholders of Amazon are asking the company to diversify its financial reserves by allocating at least 5% of its resources to Bitcoin. The proposal aims to counteract inflation and increase value for investors.

Let’s see all the details in this article. 

Bitcoin as an opportunity: the example of MicroStrategy and Tesla for Amazon

The Amazon shareholders are trying to convince the e-commerce giant to adopt an innovative strategy for managing its financial reserves: allocate at least 5% of the assets in Bitcoin (BTC).

The proposal, presented by the National Center for Public Policy Research (NCPPR), aims to diversify the company’s reserves, improving its ability to protect shareholder value and beat inflation.

The request comes at a time of great excitement in the cryptocurrency sector, with Bitcoin surpassing the threshold of 100,000 dollars, recording an impressive increase of 134%.

This extraordinary return has surpassed not only traditional assets like gold and the S&P 500 index, but also technology companies like Amazon itself, which has seen a 49% increase in its shares. 

In comparison, MicroStrategy, the company known for its massive exposure to Bitcoin, recorded gains of over 500%.

According to the shareholders’ proposal, the current mix of Amazon’s assets, which includes cash, cash equivalents, and bonds, is not sufficient to ensure optimal protection against inflation and market risks.

In the proposal of the NCPPR, it indeed reads: 

“Amazon has the fiduciary responsibility to explore investments in assets that have historically outperformed bonds, like Bitcoin.” 

This approach reflects strategies already adopted by other leading companies like Tesla and Block, which have integrated Bitcoin into their balance sheets with remarkable results.

A key point of the proposal is that the adoption of Bitcoin by Amazon would not imply a high exposure to volatility. 

The shareholders argue, on the contrary, that even a small allocation, such as 5%, could offer a balance between risk and return. Thus, at the same time improving the resilience of the company’s balance sheet.

Bitcoin: why is it an asset not to be underestimated?

Despite its volatile nature, Bitcoin has proven to be an asset capable of generating value in the long term. Its recent rally has attracted growing interest from institutional investors and companies. 

The proposal emphasizes that diversifying reserves with Bitcoin could represent an opportunity for Amazon to position itself as a pioneer among large multinationals, taking advantage of the opportunities offered by cryptocurrencies.

At the end of the third quarter, Amazon had 88 billion dollars in cash and marketable securities, a significant portion of its total assets of 585 billion dollars. 

However, according to the shareholders, these resources, concentrated mainly in bonds and low-risk instruments, do not guarantee a significant growth in value over time. 

Adding Bitcoin to the mix could not only diversify, but also improve the overall return of the assets.

In any case, the proposal presented to Amazon is not an isolated case. Just last month, the NCPPR made a similar request to the shareholders of Microsoft, urging the tech giant to consider Bitcoin as part of its balance sheet. 

The shareholders of Microsoft will vote on the proposal on December 10, an event that could influence other leading companies to follow this path.

If Amazon decided to accept the proposal, the impact could be significant not only for the company, but for the entire cryptocurrency ecosystem. 

The move would further legitimize Bitcoin as a strategic reserve asset, accelerating adoption on a global scale.

The shareholders hope that Amazon understands the long-term potential of this strategy, looking beyond the short-term volatility of Bitcoin. 

As the proposal states: 

“Maximizing shareholder value is a central responsibility. Bitcoin offers a unique opportunity to achieve this goal.”

Ultimately, the decision will be in the hands of the board of directors, but the pressure from investors could be the catalyst for an epochal change in the management of the reserves of one of the most influential companies in the world.