TL;DR
- Amazon shareholders are urging the company to add Bitcoin to its balance sheet as a hedge against inflation, reflecting a growing trend.
- The proposal highlights Bitcoin’s significant growth, with shareholders pointing to the success of companies like MicroStrategy.
- While Bitcoin’s volatility is acknowledged, proponents argue that its long-term benefits outweigh the risks, and the proposal has sparked discussions within the crypto community.
Amazon shareholders are urging the tech giant to consider adding Bitcoin to its balance sheet as a hedge against inflation. This proposal, led by the National Center for Public Policy Research (NCPPR), reflects a growing trend among corporations to diversify their assets with cryptocurrency.
The shareholders argue that Bitcoin’s impressive performance compared to traditional assets like corporate bonds makes it an attractive option for protecting shareholder value.
https://twitter.com/TimKotzman/status/1865832907597807992
The Case for Bitcoin
The proposal highlights Bitcoin’s significant growth over the past year, with the cryptocurrency surging by 134% and recently surpassing the $100,000 mark. In contrast, Amazon’s stock has risen by 49% during the same period.
Shareholders point to the success of companies like MicroStrategy, which has seen its stock outperform Amazon by 537% due to its substantial Bitcoin holdings. They believe that by allocating at least 5% of its assets to Bitcoin, Amazon can better protect its $88 billion in cash and short-term assets from inflation.
Potential Benefits and Risks
While Bitcoin is known for its volatility, proponents of the proposal argue that the long-term benefits outweigh the short-term risks. They emphasize that Bitcoin has historically outperformed traditional assets, making it a valuable addition to Amazon’s treasury.
The proposal also notes that major financial institutions like BlackRock and Fidelity, which are significant shareholders in Amazon, already offer Bitcoin ETFs to their clients. This growing institutional acceptance of Bitcoin further supports the case for Amazon to diversify its assets with cryptocurrency.
Market Reactions and Future Outlook
The proposal has sparked discussions within the crypto community and among Amazon’s shareholders. Former Binance CEO Changpeng Zhao (CZ) has even suggested that Amazon should start accepting Bitcoin payments on its platform.
While Amazon has yet to respond publicly to the proposal, the company’s interest in blockchain technology and previous explorations of cryptocurrency-related initiatives indicate a potential openness to the idea.
The push for Amazon to invest in Bitcoin reflects a broader trend of corporate adoption of cryptocurrency as a hedge against inflation. As the proposal moves forward, it will be interesting to see how Amazon’s board and shareholders respond to this bold suggestion.
