Amazon shareholders are urging the e-commerce giant to consider adding Bitcoin to its balance sheet. They argue that holding Bitcoin could shield the company’s reserves from inflation while offering better returns than traditional assets like bonds.
Why Bitcoin for Amazon?
As inflation erodes the value of cash and bonds, Bitcoin has emerged as a high-performing alternative. In 2024 alone, Bitcoin’s value soared by 131%, and over the past five years, it has surged more than 1,200%, far outpacing bonds.
Amazon holds $585 billion in assets, including $88 billion in cash and bonds, making it one of the wealthiest companies globally. Shareholders suggest allocating just 5% of these reserves to Bitcoin as a starting point, citing its potential for long-term growth despite short-term volatility.
Industry Trends and Peer Influence
Amazon’s proposal aligns with a growing trend among major corporations exploring Bitcoin. Companies like MicroStrategy, Tesla, and Block (formerly Square) have integrated Bitcoin into their reserves, with MicroStrategy seeing significant stock price gains as a result.
Microsoft shareholders are also preparing to vote on a similar proposal, demonstrating increasing corporate interest in Bitcoin as an inflation hedge and growth asset.
The Bigger Picture
This push comes as calls for broader Bitcoin adoption grow. Former Binance CEO Changpeng Zhao recently took to social media to urge Amazon to accept Bitcoin as a payment method, stating, “Simple. Accept Bitcoin payments?”
While Bitcoin’s volatility remains a concern, advocates believe it offers companies like Amazon an opportunity to diversify their holdings and generate greater shareholder value.
If Amazon embraces Bitcoin, it would mark another major step in legitimizing cryptocurrency within corporate finance. As more companies evaluate Bitcoin’s role in their asset strategies, its presence in the mainstream financial system could solidify further.
Featured image from: cryptopolitan.com