Amazon Shareholders Demand Investment in Bitcoin
Following the recent surge in Bitcoin's value, Amazon (AMZN) shareholders have made a surprising proposal to the company's board of directors. Shareholders have requested that a portion of the $88 billion cash reserves be invested in Bitcoin.
This proposal to Amazon aligns with the trend of many American companies integrating Bitcoin into their financial strategies. The success of MicroStrategy's Bitcoin strategy and the increasing interest in cryptocurrencies during the era of the new U.S. government are cited as justifications for this demand. Shareholders plan to address this proposal at Amazon's annual shareholder meeting scheduled for December 2025.
A growing number of large companies desire to incorporate Bitcoin into their treasury. With major companies like Tesla (TSLA) and Block (SQ) adding Bitcoin to their balance sheets, corporate Bitcoin adoption rates are rising, and Amazon could be one of the companies to join this trend. The involvement of significant investors such as BlackRock (BLK) and Fidelity (FIS) in facilitating access to Bitcoin ETFs strengthens the shareholders' claims.
Additionally, some speculation suggests that the U.S. government may establish a strategic reserve of Bitcoin by 2025. This possibility could influence the Amazon board's decision on accepting Bitcoin as a treasury asset.
Bitcoin is viewed as a hedge against inflation. A Washington-based think tank proposed that Amazon evaluate its reserve assets in Bitcoin, arguing that Bitcoin serves as a protective measure against depreciation amid rising inflation.
Bitcoin's value increase of 131% over the last year and 1,246% over the past five years has led the think tank to consider BTC more advantageous than traditional investment vehicles. They emphasize the need for careful examination of the performance of companies that have adopted Bitcoin among corporate investments.
Can Amazon invest in Bitcoin? Shareholders argue that Amazon should expand its investment strategies. They note that MicroStrategy's shares have appreciated 537% more than Amazon's shares due to Bitcoin investment. Furthermore, the think tank believes Amazon should invest at least 5% of its $88 billion cash and cash-equivalent assets in Bitcoin to avoid missing out on technological innovations.
The authors acknowledge the potential volatility of such investments in the short term but emphasize that Bitcoin has historically outperformed traditional investment instruments in the long run. Amazon appears to be preparing for a new era as it becomes one of the latest corporate entities to receive a Bitcoin adoption proposal.
Current status of Bitcoin: Bitcoin continued its attempts to reach $100,000 over the weekend, although upward movements appeared weak. Starting the new week with a decline of over 2%, the cryptocurrency is currently trading in the $98,700 range.