In summary
- A conservative think tank urged Amazon to convert 5% of its assets into Bitcoin to protect itself from inflation.
- The proposal will be voted on at the annual shareholder meeting, scheduled for the spring.
- Amazon reported record revenue and a 52% increase in its stock value this year.
Amazon shareholders from a conservative think tank have sent a proposal to the retail and technology giant, urging it to create a treasury reserve in Bitcoin following the largest Cryptocurrency‘s record run.
In a shareholder proposal dated December 6, The National Center for Public Policy Research asked Amazon to consider keeping 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.
“Although Bitcoin is currently a volatile asset…corporations have a responsibility to maximize shareholder value in both the long and short term,” the think tank wrote in the shareholder proposal.
Bitcoin is trading at $97,020 at the time of writing, according to data from CoinGecko, following a drop of more than 3% on the day. BTC soared last week to a record price of $103,679, and is up 27% over the past month at the current price.
The company’s shareholders will likely vote on the matter at their annual meeting, which typically occurs in the spring. The company’s board of directors is also expected to provide a recommendation on the proposal before the vote.
The National Center for Public Policy Research did not immediately respond to Decrypt’s request for comment on the feasibility of the proposal. An Amazon representative also 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 this Tuesday. The company’s board of directors has recommended that shareholders vote against the Bitcoin proposal.
Michael Saylor, founder and CEO of MicroStrategy, presented to company directors earlier this month the proposal to convert $200 billion worth of Microsoft equity distributions into Bitcoin holdings. Saylor’s firm is the largest corporate holder of Bitcoin, with approximately $42 billion.
Inflation in the US 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.
However, Amazon has overcome the problem of inflation and other economic headwinds. The firm posted strong 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 posted $158.9 billion in revenue for the quarter ending Sept. 30, up 11% from the same period a year earlier, according to the company’s financial statements. Meanwhile, profits soared to a record $15.3 billion during the same period.
The company’s shares are trading at $228 at the time of writing, marking a 52% increase in its value since the start of 2024.
Edited by Andrew Hayward
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