Key Takeaways
- Amazon shareholders propose allocating part of its $88B cash reserves to Bitcoin to combat inflation risks.
- Critics argue Amazon's operational cash needs and liabilities make adopting Bitcoin as a treasury asset challenging.
- Similar Bitcoin treasury proposals at Microsoft and other firms highlight growing corporate interest in adopting Bitcoin as a treasury asset.
Amazon Shareholders Advocate for Bitcoin Treasury
Amazon shareholders propose allocating part of the company’s $88B in cash reserves to Bitcoin as an inflation hedge.
The National Center for Public Policy Research (NCPPR), which brought the proposal, warns inflation could erode Amazon’s purchasing power, criticizing CPI metrics as unreliable.
'Amazon should – and perhaps has a fiduciary duty to – consider adding assets to its treasury that appreciate more than bonds,' the NCPPR stated.
Operational and Financial Challenges of Bitcoin Adoption
Critics argue Amazon’s operational needs and liabilities, including $67B in debt, complicate adopting Bitcoin as a treasury reserve.
With minimal net cash compared to its revenue and market cap, Amazon’s liquidity priorities may clash with Bitcoin’s volatility.
Some analysts anticipate a cold response to the proposal, which will be formally discussed at Amazon’s 2025 shareholder meeting.
Growing Momentum for Corporate Bitcoin Treasuries
Microsoft faces a similar Bitcoin proposal, with its board advising against it but shareholder support expected due to major institutional backers like BlackRock.
Michael Saylor of MicroStrategy suggests Bitcoin adoption could significantly boost Microsoft’s market capitalization, citing Rumble’s recent move as inspiration.
Broader corporate interest in Bitcoin as a treasury asset reflects concerns over inflation and fiat currency stability, driven by ongoing monetary tightening.
