Amazon Shareholders Push for Bitcoin as Inflation Hedge to Preserve Wealth

• Shareholders urge Amazon to assess Bitcoin’s potential, citing a 1,246% growth over five years, outperforming traditional assets.
• Rising inflation fuels calls for Bitcoin adoption as Amazon’s $88B cash holdings fail to combat erosion of shareholder value.
• Institutional interest in Bitcoin, led by BlackRock and Fidelity, supports shareholder push for a diversified treasury strategy.

Amazon shareholders have proposed a significant shift in the company’s treasury management. They are requesting the board assess adding Bitcoin to its financial holdings, citing its long-term potential to protect shareholder value. 

This proposal, led by the National Center for Public Policy Research, will be considered during the 2025 annual shareholder meeting. The document argues that current holdings, including $88 billion in cash, cash equivalents, and marketable securities, fail to combat inflation effectively.

Bitcoin Outperforms Traditional Financial Assets

According to shareholder data, Bitcoin has consistently outpaced traditional investments. Over the past year, Bitcoin surged 131%, while corporate bonds increased by 126% on average. Over five years, Bitcoin grew by 1,246%, significantly outperforming corporate bonds, which saw 1,242% growth during the same period. 

These figures underline Bitcoin’s ability to appreciate in value compared to assets like bonds, often yielding returns lower than true inflation rates.Notably, other corporations embracing Bitcoin have reported substantial gains. 

MicroStrategy, an early Bitcoin adopter, saw its stock outperform Amazon by 537% last year. Major corporations like Tesla and Block have also integrated Bitcoin into their balance sheets, indicating growing corporate interest.

Inflation Sparks Treasury Management Concerns

Rising inflation has intensified concerns about the erosion of shareholder value. Shareholders highlighted that U.S. inflation, averaging 4.95% over four years, has exceeded returns on government and corporate bonds. 

Studies suggest true inflation rates could be nearly double the Consumer Price Index (CPI) estimates. Consequently, assets appreciating faster than inflation are increasingly seen as a prudent choice for preserving corporate wealth.

Amazon’s institutional investors, BlackRock and Fidelity, have also shown interest in Bitcoin. Both firms now offer Bitcoin ETFs, reinforcing the asset’s mainstream appeal. Shareholders noted the growing speculation that the U.S. government might establish a Bitcoin reserve by 2025, further boosting Bitcoin’s credibility as a strategic asset.

Shareholders Advocate Diversified Treasury Strategy

The shareholder proposal emphasizes Bitcoin’s long-term growth potential despite its volatility. It suggests that even a modest allocation, such as 5% of Amazon’s assets, could enhance portfolio diversification while preserving shareholder wealth. The request shows the duty of corporations to maximize shareholder value, particularly during periods of economic instability.

With Bitcoin gaining momentum among corporations and institutions alike, Amazon’s board faces mounting pressure to evaluate this emerging asset class. Shareholders argue that exploring Bitcoin’s potential aligns with best practices in treasury management.