A group of Amazon (AMZN, Financial) shareholders, led by the National Center for Public Policy Research (NCPPR), has recommended that Amazon invest at least 5% in bitcoins. The measure interceptor for review ahead of the 2025 AGM will seek to fix the issue caused by Amazon entering the cryptocurrency market, given that Bitcoin has outperformed most assets, including corporate bonds. Interestingly, MicroStrategy (MSTR, Financial), the company that has chosen to integrate Bitcoin as part of its treasury management, had a significantly better score of 537% when compared to Amazon’s stock price in the last year.
This proposal has also highlighted the increasing institutional adoption of bitcoins; different stakeholders, such as Amazon’s shareholders, BlackRock, and Fidelity, offer bitcoin ETFs to their clients. This is well in tune with the trend of big firms like Tesla and Block incorporating cryptocurrencies in their working capital. The NCPPR thinks that Bitcoin may create inflation protection and increase steadiness in shareholder value with time.
Amazon has yet to make a public response to the proposal; however, its board will have to analyze and decide whether or not to propose the change in the proxy statement for the 2025 meeting. The NCPPR’s push comes after an attempt to get Microsoft(MSFT, Financial) to include the digital currency on its balance sheet, which was rejected by the shareholders.
This article first appeared on GuruFocus.
