Amazon shareholders are requesting the company to consider adding Bitcoin to its balance sheet as a way to protect against inflation. This follows a trend where companies, including Microsoft and Tesla, are exploring Bitcoin as an asset.
Amazon’s shareholders are asking the company to consider adding Bitcoin to its balance sheet, following in the footsteps of other big companies like Microsoft and Tesla. This proposal is part of a bigger trend where companies are considering Bitcoin to protect their money from inflation and make more money for their shareholders.
Why Bitcoin for Amazon?
As Inflation is going up, cash and bonds aren’t the best way to protect a company’s money anymore. Bitcoin, on the other hand, has been increasing in value. In 2024, Bitcoin grew by 131%, which is much better than bonds. Over the last five years, Bitcoin’s value went up by more than 1,200%, which is far outpacing bonds.
Shareholders believe that with Amazon’s $585 billion in assets, including $88 billion in cash and bonds, the company should consider adding Bitcoin to its reserves. Holding Bitcoin could help Amazon protect its profits from inflation and possibly earn better returns in the future.
Following the proposal, which is already making rounds on X (formerly Twitter), former Binance CEO Changpeng Zhao (CZ) made a post by asking the company to simply add support for crypto as a payment option on the leading e-commerce platform. “Simple. Accept bitcoin payments?,” CZ posted.
Simple. Accept bitcoin payments? 🤷♂️ https://t.co/ud5PVNYHrj
— CZ 🔶 BNB (@cz_binance) December 8, 2024
Companies like MicroStrategy, which holds a lot of Bitcoin, have seen their stock prices increase. Other companies like Tesla and Block (formerly Square) have also added Bitcoin to their balance sheets. The proposal suggests that Amazon could do the same to increase shareholder value.
While Bitcoin is a volatile asset, having some Bitcoin in its reserves could give Amazon more long-term value, even if its value fluctuates in the short term. The shareholders suggest that Amazon could start by holding just 5% of its assets in Bitcoin in the initial.
This proposal reflects a bigger trend of companies starting to see Bitcoin as a safe investment to protect against inflation. Microsoft’s shareholders are voting soon on whether to add Bitcoin to their balance sheet.
As Bitcoin becomes more accepted by big companies, it may soon become a regular part of how companies manage their assets. Amazon has yet to decide whether to add Bitcoin to its balance sheet. However, one can say that more companies are likely to follow suit with firms like Microsoft and Amazon now joining the discussion.
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