Shareholders Call on Amazon to Buy Bitcoin to Tackle Inflation

THE National Center for Public Policy Research will send a proposal from Amazon’s shareholders to the e-commerce giant to evaluate the possibility of investing part of its assets in Bitcoin.

The document was released by Tim Kotzman, associate professor at the National Center for Public Policy Research, via his profile on X.

According to him, the proposal will be discussed at the company’s annual shareholders meeting in 2025. Kotzman stated that shareholders are asking Amazon’s board to analyze the potential for protection and appreciation of Bitcoin as a strategic asset.

Kotzman also clarified that, unlike proposals involving companies like Microsoft, which are published by the SEC, the declaration power of attorney still It hasn’t been officially released yet and won’t be available until April 2025.

The National Center for Public Policy Research has submitted the attached shareholder proposal to https://t.co/Lve7Kg1nVI, Inc. for consideration at the 2025 Annual Meeting of Shareholders.

Shareholders request the board to assess the addition #Bitcoin to the company’s treasury pic.twitter.com/lsgHC0aGrt

— Tim Kotzman (@TimKotzman) December 8, 2024

However, Efforts are underway to publish the document on the official website of the National Center for Public Policy Researchwhich strengthens the transparency and relevance of the discussion in the current business and economic context.

• The National Center for Public Policy Research (NCPPR) is a conservative think tank founded in 1982 in the United States and works in diverse areas such as environmental policy, regulation, social security, constitutional law, and international affairs.
• The organization’s relationship with Amazon is established through shareholder proposals and corporate engagement initiatives. The organization, through its Free Enterprise Project, has presented resolutions at Amazon shareholder meetings, addressing topics such as diversity of views on the board of directors and corporate donation policies.

Bitcoin as a strategic alternative

THE The proposal suggests that Amazon explore the possibility of investing up to 5% of its assets in Bitcoinciting cryptocurrency’s exceptional performance compared to traditional investments.

The document notes that Bitcoin’s price rose 131% in 2024, surpassing the average 126% increase in value for corporate bonds. Over the past five years, Bitcoin’s cumulative growth has been an impressive 1,246%, while corporate bonds have returned 1,242% over the same period.

MicroStrategy, a company that adopted Bitcoin as part of its treasury strategy, saw its shares rise 537% in 2024, easily outperforming Amazon itself in the market.

The proposal also highlights that companies like Tesla and Block have already included Bitcoin in their reserves, while institutional giants like BlackRock and Fidelity offer Bitcoin ETFs to their clients.

Furthermore, the United States government plans to create a strategic Bitcoin reserve in 2025.

🚨🚨 Shareholders are putting pressure on Amazon, asking the e-commerce giant to invest 5% of its assets in #Bitcoin. 🚀📈

If Amazon decided to invest 5% of its market cap in Bitcoin, that would be ~$100 billion. pic.twitter.com/07vHyXJ6kV

— Livecoins (@livecoinsBR) December 8, 2024

Economic scenario

According to the proposal inflation in the United States over the past four yearsmeasured by the official consumer price index (CPI), averaged 4.95%, peaking at 9.1% in June 2022.

However, Independent studies suggest that the real inflation impact could be double the recorded value.

For companies like Amazon, that have billions of dollars in liquid assetsthis context entails a risk of capital devaluation.

At this moment, Amazon manages a total of $585 billion in assetsof which $88 billion is allocated to cash, cash equivalents and marketable securities, including government and corporate bonds.

• Based on Bitcoin’s current price of $99,905 per unit, an investment of $29.25 billion today would allow Amazon to acquire approximately 292 thousand bitcoins.

The proposal states that these assets do not adequately protect the company’s capital value as bond yields are lower than actual inflation.

Bitcoin is important for diversifying the treasury

Although Bitcoin is known for its volatility, The proposal states that an allocation of just 5% would be enough to diversify Amazon’s coffers without exposing the company to excessive risks.

Diversification would be a strategy to maximize long-term shareholder value, protect the company’s assets from inflation, and capitalize on the cryptocurrency’s appreciation potential.

In the filing, shareholders formally request that Amazon’s board conduct a detailed analysis to determine whether adding Bitcoin to the company’s coffers is a strategy that aligns with shareholders’ best long-term interests.

If approved, the initiative could position Amazon as one of the first global retail giants to adopt Bitcoin as part of its financial strategy, following the example of technology and financial services companies such as Tesla and MicroStrategy.

Microsoft is also considering buying Bitcoin

In addition to Amazon, Microsoft could also enter the Bitcoin market, with the company’s shareholders set to decide next Tuesday (10) whether the company should include Bitcoin on its balance sheet.

The proposal was also put forward by the National Center for Public Policy Research, which argues that cryptocurrency provides strong protection against inflation.

However, the The Microsoft board recommended voting againststating that the company is already considering a wide range of assets in its investment strategy.

The decision comes at a time when Bitcoin has reached the historic milestone of $100,000 and is receiving support from political figures such as Donald Trump and Vladimir Putin.

Despite this, Microsoft maintains a conservative stance, reflecting the views of co-founder Bill Gates, who has previously criticized the crypto market.