Amazon Shareholders Ask to Invest in Bitcoin

Amazon’s shareholders have submitted a proposal to add Bitcoin (BTC) to the company’s balance sheet as a means to protect their capital from rising inflation. This comes after recent movements by companies such as Microsoft and Tesla, who also recognize the potential of Bitcoin as a valuable asset class.

Why should Amazon invest in Bitcoin?

With the current economic situation where inflation is a growing concern, traditional assets such as cash and bonds are becoming less attractive. Bitcoin, on the other hand, showed a growth of 131% in 2024, which is significantly higher than the returns on bonds. Over the past five years, Bitcoin has even seen a value increase of more than 1,200%, making it clear that it could be an interesting alternative for inflation protection.

Amazon, with a balance sheet of $585 billion, including $88 billion in cash and bonds, could benefit from adding Bitcoin to its reserves according to its shareholders. This could not only protect the company’s profits from inflation but also potentially offer higher returns in the future.

Risk vs. reward

Although Bitcoin is volatile, owning it can add value to Amazon’s reserves in the long term, even with short-term fluctuations. The proposal advises starting with an investment of 5% of assets in Bitcoin, which would be a conservative approach to this new asset class.

Examples of companies with Bitcoin

Companies like MicroStrategy have seen their stock prices rise by holding significant amounts of Bitcoin. Tesla and Block (formerly Square) have also added Bitcoin to their balance sheets, potentially increasing their shareholder value. This proposal for Amazon suggests a similar strategy to maximize shareholder value.

A growing trend

This move by Amazon’s shareholders reflects a broader trend in business, where Bitcoin is increasingly seen as a safe haven against inflation. Microsoft’s shareholders will soon also vote on a similar proposal.

With increasing acceptance by large companies, Bitcoin could become a standard part of how companies manage their financial reserves. Whether Amazon will add Bitcoin to its balance sheet is still uncertain, but the discussion taking place now suggests that more companies may follow.

Shareholders and crypto community react

Following the news of the proposal on X (formerly Twitter), former Binance CEO Changpeng Zhao (CZ) responded with the suggestion that Amazon should simply add support for crypto payments to its platform. “Simple. Accept Bitcoin payments?”, wrote CZ, further fueling the discussion.