Amazon will decide at its 2025 shareholder meeting whether to adopt Bitcoin as its reserve asset
The National Center for Public Policy Research (NCPPR), a think-tank located in Washington, D.C., recently submitted a shareholder proposal to the Internet giant Amazon, suggesting that the company consider adopting Bitcoin (BTC) as part of its corporate capital reserve strategy at the shareholders' meeting in April 2025.
Protecting shareholder value: using Bitcoin to combat inflation
According to a document shared by Jubilee Royal CEO Tim Kotzman, NCPPR stated in the proposal that the current Consumer Price Index (CPI) used to measure inflation shows an inflation rate of 4.95%, but they believe this is a "very poor indicator" that does not reflect the true rate of currency depreciation, and the actual inflation rate may be twice the CPI data.
The letter mentioned that Amazon currently has $88 billion in cash and short-term cash equivalents, but the value of these assets is being eroded by high inflation risks. To protect shareholder value, the think tank suggests that Amazon should include Bitcoin in its asset allocation to hedge this risk. They wrote:
As of December 6, 2024, the price of Bitcoin has risen by 131% over the past year, outperforming corporate bonds by an average of 126%. Over the past five years, the price of Bitcoin has increased by 1246%, outperforming corporate bonds by an average of 1242%
The think tank suggests that Amazon allocate at least 5% of its assets to Bitcoin to protect the value of corporate assets, and cites MicroStrategy's Bitcoin reserve strategy as a successful case.
Microsoft shareholders will decide whether to invest in Bitcoin
According to previous reports from Zombie, the National Center for Public Policy Research has also made a similar proposal to Microsoft, emphasizing the Bitcoin investment strategy of listed company MicroStrategy and stating that its performance this year is over 300% higher than Microsoft's. The research center also pointed out that although Bitcoin is still unstable, it can serve as a tool to hedge against inflation and corporate bond yields.
Although the Microsoft board of directors recommended that shareholders oppose the proposal, the final decision will still be made by shareholders in a shareholder vote on December 10th. If shareholders or shareholder groups with a large number of shares vote in favor, the proposal may still be passed.
Micro strategy inspires enterprises to adopt Bitcoin reserves
MicroStrategy Together with its founder Michael Saylor, they have promoted the adoption of Bitcoin enterprise reserve strategies, which are now being implemented by an increasing number of companies and pension funds.
According to MSTR Tracker data, the company currently holds over $40 billion worth of Bitcoin, bringing in approximately $16.6 billion in profits for the company.
Mining company MARA (formerly known as Marathon Digital) also began to follow the example of micro strategy and completed a $1 billion zero coupon convertible bond issuance in November 2024, using the funds to purchase 6474 bitcoins as company reserves.
Artificial intelligence company Genius Group also announced in November 2024 that it would convert its capital reserves into Bitcoin and purchase 110 bitcoins at an average price of approximately $90932 per coin, officially launching its Bitcoin reserve accumulation plan.
