Amazon Shareholders Call for Bitcoin Allocation
Key Points:
- MicroStrategy’s stock has outperformed Amazon’s stock by 537% in the past year
- The proposal calls for Amazon to include some Bitcoin to maximize shareholder value without taking on too much risk
- Last week, Michael Saylor, CEO of MicroStrategy called on Microsoft to adopt Bitcoin, calling it “digital capital”
A group of Amazon shareholders has requested that the company allocate 5% of its assets in Bitcoin.
The National Center for Public Policy Research, a free-market, independent conservative think tank, submitted the proposal to Amazon for consideration at its 2025 annual shareholder meeting.
The proposal, shared by Tim Kotzman, a podcast host covering Bitcoin and MicroStrategy, recommends adding “assets to its treasury that appreciate more than bonds, even if those assets are more volatile short-term.”
Bitcoin’s Performance:
The proposal points to Bitcoin’s price, which has increased more than 131% over the past year, outperforming corporate bonds by more than 126%, on average.
MicroStrategy, which holds Bitcoin on its balance sheet, has had its stock outperform Amazon stock by 537% in the previous year.
“Institutional and corporate Bitcoin adoption is becoming more commonplace: more public companies such as Tesla and Block have added Bitcoin to their balance sheets; Amazon’s second and fourth largest institutional shareholders – BlackRock and Fidelity, respectively – offer their clients a Bitcoin ETF; and the US government may form a Bitcoin strategic reserve in 2025.”
Amazon’s Responsibility:
The proposal highlights that while Bitcoin is a “volatile asset,” Amazon’s stock also faced similar volatility in the past. Companies have a responsibility to maximize shareholder value over the long-term as well as the short-term by diversifying the balance sheet with assets like Bitcoin.
Amazon should evaluate the benefits of holding at least 5% of its assets in Bitcoin to mitigate risk and enhance shareholder value.
Michael Saylor on Bitcoin as “Digital Capital”
The shareholder proposal coincides with Michael Saylor, CEO of MicroStrategy, advocating for Microsoft to adopt Bitcoin as “digital capital” for companies to own.
Saylor emphasizes that Bitcoin represents the greatest digital transformation of the 21st century and offers a way for companies to protect their capital from various risks.
He suggests that holding Bitcoin can help companies avoid risks associated with traditional assets like stocks and bonds, making it a valuable addition to corporate portfolios.
