Shareholders Demand That Amazon Add Bitcoin To Its Treasury

Amazon shareholders are urging the company to consider adding Bitcoin (BTC) to its balance sheet as a hedge against inflation, following the example of other major companies like Microsoft and Tesla. This request is part of a larger trend in which businesses are exploring Bitcoin as a potential asset to safeguard their finances and increase shareholder returns.

Protection Against Inflation

The rationale behind this decision is that, with rising inflation, traditional assets like cash and bonds are less effective at preserving value. In contrast, Bitcoin has seen significant growth, increasing by 131% in 2024 alone, and over 1,200% in the past five years, far surpassing the performance of various bonds.

With $585 billion in assets, including $88 billion in cash and bonds, Amazon shareholders believe the company should consider adding Bitcoin to its reserves. This move could help Amazon shield its profits when it comes to inflation and potentially yield higher returns in the future. Following the proposal, former Binance CEO Changpeng Zhao (CZ) suggested that Amazon could also accept Bitcoin as a payment method, further embracing cryptocurrency.

The Bitcoin Effect

Companies like MicroStrategy, which holds significant Bitcoin assets, have seen their stock prices rise, and Tesla and Block (formerly Square) have similarly added Bitcoin to their balance sheets. The proposal for Amazon to do the same is based on the belief that it would boost shareholder value.

Though Bitcoin is a volatile asset, shareholders propose Amazon start by allocating just 5% of its assets to Bitcoin. This idea reflects a broader shift where companies are viewing Bitcoin as a reliable long-term investment to combat inflation. Microsoft shareholders are also set to vote on adding Bitcoin to their balance sheet soon.

As Bitcoin gains wider acceptance among major companies, it may become a standard asset management tool. While Amazon has not yet made a decision, the increasing discussion around Bitcoin suggests more companies, including Amazon and Microsoft, may soon adopt similar strategies.