Key points:
- Amazon shareholders have proposed allocating at least 5% of the company’s assets to Bitcoin as a hedge against inflation.
- Amazon Bitcoin’s investment plan aligns with similar actions from companies like Tesla and MicroStrategy.
Amazon shareholders have put forward a proposal for the company to invest some of its assets in Bitcoin, citing the cryptocurrency as a hedge against inflation and a means to diversify a portfolio.
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Amazon Bitcoin Investment Gets Support from Shareholders
The effort, led by the conservative think tank National Center for Public Policy Research, is the latest in a series of companies that have considered Bitcoin as a way to safeguard shareholder value.
Amazon Bitcoin’s investment proposal recommends that the company invest at least 5% of its $585 billion in total assets, with $88 billion in cash and bonds, in Bitcoin. For its defenders, it surpasses traditional assets such as corporate bonds with its surprising growth: 131% in 2024 and more than 1,200% in the last five years, making it an attractive addition to Amazon’s balance sheet.
Proponents also point to the success of companies like MicroStrategy, Tesla and Block, which have benefited from stock market gains tied to their Bitcoin reserves. In fact, Tesla and MicroStrategy have recorded hundreds of millions of dollars in profits by adding Bitcoin to their balance sheets.
In a tweet on Sunday, former Binance CEO Changpeng Zhao (CZ) weighed in and stated that Amazon could also accept Bitcoin as a means of payment: “Simple. Accept payments with bitcoins?
Bitcoin’s Widest Use in Inflation Protection Strategies
The Amazon Bitcoin investment plan is one of many proposals that have been presented to large corporations. Last month, the NCPPR sent an October letter to Microsoft urging the company to adopt Bitcoin.
Microsoft’s board of directors recommended against doing so, citing consideration of various investment avenues, including Bitcoin, so a vote by the tech giant’s shareholders on December 10 could help shape future strategies for corporate uses of Bitcoin.
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