In a new filing by the National Center for Public Policy Research (NCPPR), shareholders at American-based multinational technology company Amazon proposed that the tech giant should consider adding Bitcoin to its treasury holdings.
According to NCPPR, a self-acclaimed think tank in the United States, the proposal recommends that Amazon consider allocating at least 5% of its treasury holdings to Bitcoin.
Although Bitcoin is a highly volatile asset, the NCPPR argued that Amazon’s stock has also experienced volatility in the past, and therefore adding the pioneering digital asset to the tech firm’s treasury holding is in the “best long-term interest of shareholders.”
In a similar development, holding Bitcoin as a hedge against inflation raised dust between Microsoft’s leadership board and its shareholders. Both parties were required to vote for or against investing at least 1% of their total assets in Bitcoin.
Amazon to Rub Shoulders With MicroStrategy
Per today’s filing, the proposal compels Amazon to borrow a leaf from business intelligence company MicroStrategy. NCPPR compared Amazon’s stock value to that of MicroStrategy, whose stock outperformed Amazon’s by 537% in 2023 because the Bitcoin-loving firm holds Bitcoin on its balance sheet.
Meanwhile, with $585 billion in total assets, Amazon has $88 billion in cash, U.S. government bonds, corporate bonds, cash equivalents, and marketable securities, of which cash is “constantly being debased.” The proposal adds, “Amazon isn’t adequately protecting billions of dollars of shareholders’ value simply by holding these assets.”
MicroStrategy Takes Lead
Institutional and corporate firms holding Bitcoin are gradually becoming the norm, with MicroStrategy as their leader. The business intelligence company recently solidified its stance on Bitcoin by acquiring large amounts of Bitcoins throughout the year, bringing its total Bitcoin holdings to over $40 million in value.
As Bitcoin continues to gain ground as a global financial asset, MicroStrategy plans to raise $2.6 million from senior convertible notes to accumulate more Bitcoins.
