Amazon shareholders at a conservative think tank have sent a proposal to the retail and tech giant, urging it to create a Bitcoin treasury reserve following a record-breaking run for the largest cryptocurrency.
In a shareholder proposal dated December 6, The National Center for Public Policy Research asked Amazon to consider holding at least 5% of its assets in Bitcoin. The think tank argued that converting Amazon’s assets into the cryptocurrency could protect the value of those funds in an intense inflationary environment.
“Though Bitcoin is currently a volatile asset… corporations have a responsibility to maximize shareholder value over the long-term as well as the short-term,” the think tank wrote in the shareholder proposal.
Bitcoin is trading at $97,020 as of writing time, CoinGecko data shows, down over 3% on the day. The token soared last week to an all-time-high price of $103,679, and has jumped by 27% over the last month at the current price.
The company’s shareholders will likely vote on the matter at their annual meeting, which usually occurs in the spring. The company’s board is also expected to provide a recommendation to the proposal before the vote.
The National Center for Public Policy Research did not immediately respond to Decrypt’s request for comment on the viability of the proposal. An Amazon representative likewise could not be reached prior to publication.
The think tank is already in the midst of trying to convince tech giant Microsoft to add Bitcoin to its own balance sheet, with a proposal that shareholders will vote on Tuesday. The firm’s board has recommended that shareholders vote against the Bitcoin proposal.
MicroStrategy founder and Executive Chairman Michael Saylor pitched the company’s directors earlier this month on converting Microsoft’s $200 billion worth of capital distributions into Bitcoin holdings. Saylor’s firm is the largest corporate holder of Bitcoin, with approximately $42 billion worth.
U.S. inflation rose 2.6% and 2.4% in October and September, respectively, shortly after the Federal Reserve began cutting interest rates. Recent growth in consumer prices remains above the Fed’s 2.0% target.
Amazon has pushed past the inflation issue and other economic tailwinds, however. The firm notched robust revenue and earnings in the third quarter, with its cloud computing and advertising businesses largely driving its strong financial performance.
The Seattle-based tech giant’s recorded $158.9 billion in revenue for the quarter ending on September 30, up 11% from the same time last year, according to the company’s financial statements. Meanwhile, profits soared to a record $15.3 billion during the same period.
The company’s stock is trading at $228 as of writing time, marking a 52% increase in its value since the start of 2024.
Edited by Andrew Hayward
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Liz Napolitano
https://decrypt.co/295656/amazon-shareholders-bitcoin-treasury-microsoft
2024-12-09 19:58:17
