Summary:
Amazon shareholders propose a 5% Bitcoin allocation to combat inflation.
Bitcoin has surged 134% this year, outperforming major assets.
Companies like Tesla and Block are adopting BTC, underscoring its viability.
Amazon's current asset mix does not sufficiently protect shareholder value.
A similar proposal has been made for Microsoft shareholders regarding BTC.
Amazon's Bold Move into Bitcoin
Amazon's (AMZN) shareholders are advocating for the company to adopt a strategy similar to MicroStrategy's (MSTR) by allocating at least 5% of its reserves into Bitcoin (BTC). This proposal, initiated by the National Center for Public Policy Research (NCPPR), emphasizes that such a move could help the company combat inflation and significantly boost shareholder value.
Despite Bitcoin's volatility, the shareholders argue that Amazon has a responsibility to prioritize long-term shareholder value. The proposal states, "Diversifying the balance sheet by including some bitcoin solves this problem without taking on too much volatility."
Bitcoin's Impressive Performance
Bitcoin has seen a remarkable 134% surge this year, surpassing the $100,000 mark, outperforming major assets like gold and the S&P 500. In contrast, companies like MicroStrategy have experienced even more astounding gains, with shares increasing by over 500%, compared to Amazon's 49% rise.
The proposal also highlights the growing trend of BTC adoption by major companies such as Tesla and Block, stressing that Amazon has a fiduciary duty to look beyond the short-term volatility of assets like BTC, which generally appreciate more than bonds.
Current Asset Composition
As of the end of the third quarter, Amazon's total assets stood at $585 billion, with $88 billion in cash, cash equivalents, and marketable securities, including Treasury notes and bonds. The shareholders believe this asset mix is insufficient to adequately protect shareholder value.
In a related development, the NCPPR recently submitted a similar proposal for Microsoft shareholders, advocating for the tech giant to consider diversifying into Bitcoin. A vote on this proposal is scheduled for December 10.
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