tl;dr
Amazon shareholders are urging the company to allocate at least 5% of its assets to Bitcoin to combat inflation and enhance shareholder value. The proposal, submitted by the National Center for Public Policy Research, argues that Amazon should follow MicroStrategy's lead in diversifying into Bitcoin...
Amazon shareholders are pushing for the company to allocate a minimum of 5% of its assets to Bitcoin, aiming to beat inflation and boost shareholder value. The proposal, submitted by the National Center for Public Policy Research, asserts that Amazon has a fiduciary responsibility to diversify into assets like Bitcoin, which have outperformed traditional assets such as bonds. The shareholders urge Amazon to emulate MicroStrategy's approach by including Bitcoin in its reserves.
The National Center for Public Policy Research argues that while Bitcoin is volatile, corporations have a long-term responsibility to maximize shareholder value. Diversifying the balance sheet with Bitcoin is seen as a way to mitigate volatility while capturing long-term appreciation. The proposal emphasizes that Amazon should at least evaluate the benefits of holding 5% of its assets in Bitcoin.
Bitcoin, having surged 134% this year and surpassing the $100,000 mark, has outperformed major assets like gold and the S&P 500. MicroStrategy, a prominent holder of Bitcoin, has seen gains of over 500%, eclipsing Amazon's 49% rise.
The proposal underscores the outperformance of companies like MicroStrategy, Tesla, and Block, which have adopted Bitcoin. It also notes Amazon's substantial total assets, highlighting the need for diversification to protect shareholder value.
These developments follow a similar shareholder proposal submitted to Microsoft, indicating a broader trend of shareholders urging tech giants to consider diversifying into Bitcoin. Microsoft shareholders are scheduled to vote on their Bitcoin consideration proposal on December 10.
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