In a bold move to counter inflation and maximize shareholder value, Amazon (AMZN) shareholders are urging the e-commerce giant to follow in the footsteps of MicroStrategy (MSTR) by diversifying its reserves into Bitcoin (BTC).
The proposal, spearheaded by the National Center for Public Policy Research (NCPPR), argues that while Bitcoin is inherently volatile, it offers long-term potential for significant returns. By allocating a portion of its assets to Bitcoin, Amazon could mitigate the risks associated with traditional investments and position itself for future growth.
“Amazon has a fiduciary duty to maximize shareholder value over the long term,” the proposal states. “Diversifying the balance sheet with Bitcoin can achieve this goal without undue risk.”
The proposal cites the impressive performance of MicroStrategy, which has seen its stock price surge over 500% this year due to its significant Bitcoin holdings. Additionally, other prominent companies like Tesla and Block have embraced Bitcoin, further validating its potential as a valuable asset.
Amazon currently holds substantial cash and marketable securities, including Treasury notes and corporate bonds. However, the proposal suggests that this asset mix may not be sufficient to protect shareholder value in the long run. By adding Bitcoin to its portfolio, Amazon could enhance its risk-adjusted returns and capitalize on the growing cryptocurrency market.
This isn’t the first time the NCPPR has advocated for Bitcoin adoption among major corporations. Last month, the organization submitted a similar shareholder proposal to Microsoft, urging the tech giant to consider Bitcoin as a strategic investment. Microsoft shareholders are set to vote on this proposal on December 10th.
As the cryptocurrency market continues to evolve, it will be interesting to see whether Amazon and other major corporations heed the calls of their shareholders and embrace Bitcoin as a viable investment strategy.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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