Amazon Bitcoin Investment Plan Under Consideration For 5% Asset Allocation

Key Points:

• Amazon shareholders have proposed allocating at least 5% of the company’s assets to Bitcoin as a hedge against inflation.
• The Amazon Bitcoin investment plan aligns with similar actions by companies like Tesla and MicroStrategy.

Amazon shareholders have filed a proposal for the company to invest some of its assets in Bitcoin, citing the cryptocurrency as an inflation hedge and a means of diversifying a portfolio.

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Amazon Bitcoin Investment Gets Shareholders’ Support

The effort, led by the conservative think tank National Center for Public Policy Research, is the latest in a string of companies that have considered Bitcoin as a way to safeguard shareholder value.

The Amazon Bitcoin investment proposal recommends that the company invest at least 5% of its $585 billion in total assets, with $88 billion in cash and bonds, into Bitcoin. For proponents, it outpaces traditional assets such as corporate bonds with its astonishing growth: 131% in 2024 and over 1,200% in the past five years, thus making it an attractive addition to Amazon‘s balance sheet.

Proponents also point to the success of companies such as MicroStrategy, Tesla, and Block, which have benefited from stock gains tied to their Bitcoin reserves. Indeed, Tesla and MicroStrategy have recorded hundreds of millions of dollars in profits from adding Bitcoin to their balance sheets.

In a Sunday tweet, former Binance CEO Changpeng Zhao (CZ) weighed in, positing that Amazon could also accept Bitcoin as a means of payment: “Simple. Accept bitcoin payments?

Bitcoin’s Greater Use in Inflation Protection Strategies

The Amazon Bitcoin investment plan is one of many proposals that have gone before major corporations. Last month, an October letter was sent by the NCPPR to Microsoft urging the company to adopt Bitcoin.

Microsoft’s board recommended against it, citing consideration of various investment avenues, including Bitcoin, so a vote by the tech giant’s shareholders this coming December 10 could help shape future strategies for corporate Bitcoin uses.