Amazon (AMZN) shareholders are making a bold case: allocate 5% of the company’s massive $88 billion cash reserves to Bitcoin. The proposal, submitted by the National Center for Public Policy Research (NCPPR), argues that Amazon’s current mix of cash, bonds, and other securities isn’t enough to safeguard shareholder value against inflation. “At minimum, Amazon should evaluate the benefits of holding some, even just 5%, of its assets in Bitcoin,” the NCPPR stated.
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Bitcoin’s Unstoppable Year Makes Traditional Assets Look Tame
In the financial world, Bitcoin is behaving like a rockstar on a global tour—stealing the show from gold, the S&P 500, and practically everything else. It’s up a staggering 134% this year, with its price topping $100,000. And if that’s not jaw-dropping enough, consider this: MicroStrategy (MSTR), one of the biggest corporate Bitcoin holders, has seen its stock explode by over 500%. Amazon’s respectable 49% gain this year suddenly looks humble in comparison.
According to the NCPPR, Amazon’s treasure chest of $88 billion isn’t working hard enough. “Corporations have a responsibility to maximize shareholder value over the long-term…diversifying the balance sheet by including some Bitcoin solves this problem without taking on too much volatility,” the proposal urged.
Other Tech Titans Eye Bitcoin Holdings
Amazon isn’t the only tech titan feeling the heat. Last month, the NCPPR pitched a nearly identical proposal to Microsoft (MSFT), whose shareholders are set to vote on it December 10. In a similar vein, Michael Saylor, chair of MicroStrategy, suggested that Bitcoin could massively boost corporate value in his recent presentation to Microsoft’s board.
While Amazon’s board hasn’t weighed in yet, Bitcoin’s meteoric rise is forcing traditional investment strategies to confront a digital reality.
At the time of writing, Bitcoin is sitting at $98,384.82.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
