Amazon Shareholders Push for Bitcoin to Fight Inflation

Amazon shareholders are pushing for the company to allocate part of its $88 billion cash reserves to Bitcoin, suggesting it could act as a hedge against inflation. The proposal, spearheaded by the National Center for Public Policy Research (NCPPR), argues that Bitcoin has historically outperformed traditional assets like bonds despite its volatility.

The NCPPR criticized reliance on the Consumer Price Index (CPI), claiming it underestimates the real inflation rate, which they believe is closer to 10%. In their proposal, they stated, “Amazon should consider adding assets to its treasury that appreciate more than bonds, even if they are volatile in the short term.” Proponents view this move as a way to protect Amazon’s purchasing power while positioning the company as a leader in adopting modern financial strategies.

Bitcoin’s growing adoption among corporations adds weight to the proposal. Companies like MicroStrategy and Tesla have already embraced Bitcoin for their reserves, with MicroStrategy holding over 402,000 BTC, valued at over $40 billion. Advocates believe Amazon’s potential adoption could set a trend for other giants like Apple, signaling a broader shift toward Bitcoin in corporate boardrooms.

However, critics argue that Amazon’s financial structure makes Bitcoin adoption unlikely. One researcher pointed out that while Amazon holds $88 billion in cash, it also has $67 billion in debt and $87 billion in lease obligations, requiring significant liquidity for operations. These constraints, they claim, make adopting a volatile asset like Bitcoin impractical.

The proposal is expected to be discussed at Amazon’s 2025 annual shareholder meeting. Binance co-founder Changpeng Zhao (CZ) has also called on Amazon to accept Bitcoin as payment, further fueling the debate.

Microsoft is also facing similar pressure. Shareholders at Microsoft will vote on a Bitcoin treasury proposal during their annual meeting on December 10. However, the company’s management has advised rejecting the idea, stating it is “unnecessary” since treasury strategies are already under regular review. Still, the involvement of BlackRock, a major investor and key player in Bitcoin ETFs, has led to speculation that the proposal could gain traction.

The growing momentum for Bitcoin as a corporate treasury asset reflects broader concerns about inflation and the declining value of fiat currency. Tesla’s high-profile Bitcoin purchase in 2021 and MicroStrategy’s continued investments have set an example for others. Michael Saylor, MicroStrategy’s executive chairman, has even suggested that adopting Bitcoin could add trillions of dollars to Microsoft’s market capitalization.

Other companies are also exploring Bitcoin strategies. Video platform Rumble recently announced it had established a Bitcoin treasury shortly after discussions with Saylor. Such moves highlight Bitcoin’s increasing role in corporate finance, as inflation fears and economic uncertainty drive more companies to consider alternatives to traditional assets.

These proposals could signal a major shift in corporate treasury management, but whether companies like Amazon and Microsoft adopt Bitcoin remains uncertain. As debates continue, the decisions made by these tech giants could significantly influence the future of cryptocurrency adoption in the business world.