TLDR
Amazon shareholders proposing 5% minimum Bitcoin allocation of company assets
Proposal led by NCPPR, citing Bitcoin’s outperformance vs traditional assets
MicroStrategy’s Bitcoin-holding stock outperformed Amazon by 537% in past year
BlackRock and Fidelity (major Amazon shareholders) already offer Bitcoin ETFs
Shareholders will vote on proposal in April 2025 annual meeting
A group of Amazon shareholders, led by the National Center for Public Policy Research (NCPPR), has submitted a proposal requesting the company to invest at least 5% of its assets in Bitcoin. The proposal aims to protect shareholder value against inflation through cryptocurrency investment.
The NCPPR, a think tank focused on free-market principles, shared their proposal through Tim Kotzman. They argue that Bitcoin has shown better performance than traditional assets like corporate bonds in recent years, making it an attractive option for treasury diversification.
The proposal highlights the success of companies that have already invested in Bitcoin. MicroStrategy, which holds Bitcoin as part of its treasury strategy, saw its stock outperform Amazon by 537% over the past year. This dramatic difference in performance serves as a key argument for the proposed investment strategy.
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 shareholder meeting.
Shareholders request that the Board assess adding #Bitcoin to the Company’s Treasury pic.twitter.com/lsgHC0aGrt
— Tim Kotzman (@TimKotzman) December 8, 2024
The shareholders point to growing institutional acceptance of Bitcoin as support for their proposal. Major financial institutions BlackRock and Fidelity, which are Amazon’s second and fourth-largest institutional shareholders, currently offer Bitcoin ETFs to their clients.
The timing of this proposal aligns with broader trends in corporate Bitcoin adoption. Companies like Tesla and Block have already added Bitcoin to their balance sheets, setting a precedent for large corporations investing in cryptocurrency.
The proposal specifically requests Amazon’s board to evaluate whether allocating funds to Bitcoin would benefit shareholders in the long term. This evaluation would need to consider various factors including market conditions, regulatory environment, and potential risks.
While Amazon hasn’t yet responded publicly to this proposal, the company has shown interest in blockchain technology before, particularly in supply chain management. However, direct investment in cryptocurrency would represent a new direction for the company.
The NCPPR has been actively promoting corporate Bitcoin adoption. In October, they sent a similar proposal to Microsoft, suggesting that the technology giant should also consider Bitcoin investment. Microsoft’s board recommended shareholders vote against the proposal, stating they already evaluate various investment options, including Bitcoin.
The think tank has taken a strong stance on the matter, warning that if Microsoft decides against Bitcoin investment and the cryptocurrency’s value increases, the company might face shareholder litigation.
For the Amazon proposal to move forward, the board of directors must first review it and decide whether to include it in the proxy statement for the upcoming annual shareholders meeting. This meeting is scheduled for April 2025.
If the proposal makes it to the proxy statement, shareholders will have the opportunity to vote on it. The outcome will depend on the total number of votes for and against the proposal.
Major financial institutions hold large stakes in Amazon. These include Vanguard Group, BlackRock, State Street, Fidelity Management & Research, Geode Capital Management, and JPMorgan. Their votes could play a crucial role in determining the proposal’s fate.
The proposal suggests that the U.S. government might form a Bitcoin strategic reserve in 2025, which could potentially impact the cryptocurrency’s adoption and value. However, this remains speculative at this point.
Amazon’s board, like Microsoft’s, will likely provide a recommendation to shareholders about how to vote on the proposal. This recommendation will carry weight in the final decision.
The proposal represents a direct attempt by shareholders to influence Amazon’s treasury management strategy, specifically pushing for cryptocurrency adoption as a hedge against inflation.
