Amazon Shareholders Push for Bitcoin Allocation in Company’s Treasury

A group of Amazon shareholders is urging the company to allocate at least 5% of its assets to Bitcoin, advocating for the cryptocurrency as a hedge against inflation and a means of asset diversification. This proposal, submitted by the National Center for Public Policy Research (NCPPR), a free-market think tank, suggests that Amazon should consider adding Bitcoin to its treasury, drawing comparisons to other companies that have already adopted the digital asset.

The Proposal and Rationale

The proposal, shared by Tim Kotzman of the NCPPR, argues that Bitcoin’s performance has outpaced traditional assets like corporate bonds, making it an attractive investment for Amazon. The think tank points to the success of companies like MicroStrategy and Tesla, both of which hold significant Bitcoin reserves on their balance sheets.

"MicroStrategy, which holds Bitcoin on its balance sheet, has seen its stock outperform Amazon stock by 537% in the past year," the proposal highlights. "And they’re not alone—more public companies, including Tesla and Block, have added Bitcoin to their treasuries." The letter also notes that Amazon's second and fourth largest institutional shareholders, BlackRock and Fidelity, offer Bitcoin ETFs to their clients, signaling the increasing institutional interest in the cryptocurrency.

Institutional Push for Bitcoin Adoption

This proposal is part of a broader movement toward Bitcoin adoption among institutional investors. The NCPPR made a similar request to Microsoft in October, urging the company to consider Bitcoin as part of its investment strategy. However, Microsoft’s board has advised shareholders to vote against the proposal, stating that it already evaluates a wide range of investable assets, including Bitcoin.

The NCPPR has warned Microsoft that if the company does not adopt Bitcoin and its value increases, shareholders could pursue legal action, claiming the board missed an opportunity for long-term gains.

Amazon's Response and Potential Impact

Amazon has not yet publicly responded to the proposal, but the company has shown interest in blockchain technology in the past, particularly in the context of supply chain management. The NCPPR’s call for Amazon to consider Bitcoin follows a trend of growing institutional interest in the cryptocurrency, with major players such as BlackRock and Fidelity involved in Bitcoin-related financial products.

Once a shareholder proposal is filed, Amazon’s board will review it to determine whether to include it in the proxy statement for the company’s annual shareholders meeting. If the proposal is added, shareholders will vote on it in April 2025. The final decision will depend on the level of shareholder support for the proposal, with the board typically providing a recommendation on how investors should vote.

The Role of Major Shareholders

Amazon’s top shareholders include prominent financial institutions such as Vanguard Group, BlackRock, State Street, Fidelity Management & Research, Geode Capital Management, and JPMorgan. These institutional investors are closely monitoring the debate over Bitcoin’s role in corporate treasuries, and their stance on the proposal could have a significant influence on the outcome.

As institutional interest in Bitcoin continues to grow, the pressure on major companies like Amazon to integrate the cryptocurrency into their investment strategies is likely to intensify. Whether Amazon chooses to follow the lead of companies like MicroStrategy and Tesla could have broader implications for the future of corporate treasury management and Bitcoin adoption.

In the coming months, all eyes will be on Amazon’s board to see if they decide to include the Bitcoin allocation proposal in their proxy statement and how shareholders ultimately vote in April 2025.