Shareholders of e-commerce behemoth Amazon are pushing the company to put 5% of its assets in Bitcoin (BTC).
A recent shareholder proposal by conservative think tank National Center for Public Policy Research (NCPPR) suggested that Amazon should heavily invest in Bitcoin. The proposal reads:
“Though Bitcoin is currently a volatile asset — as Amazon stock has been at times throughout its history — corporations have a responsibility to maximize shareholder value over the long-term as well as the short-term. Diversifying the balance sheet by including some bitcoin solves this problem without taking on too much volatility.”
The details
Holding 5% of its assets in Bitcoin is portrayed as the bare minimum the proposal. The text continues:
“At minimum, Amazon should evaluate the benefits of holding some, even just 5%, of its assets in Bitcoin.”
This would translate to less extreme version of the strategy adopted by MicroStrategy, a publicly-traded business intelligence company founded in 1989 that pivoted to acquiring as much Bitcoin as possible in 2020.
MicroStrategy now holds over 1% of all Bitcoin that will ever be mined and is well on its way to reach 2% soon. Also, Amazon is not the only tech giant that may soon consider such an investment.
Last month, news broke that MicroStrategy chairman Michael Saylor is about to pitch investing in the coin to Microsoft. He said that an activist arranged the meeting:
“The activist that put that proposal together contacted me to present to the board, and I agreed to provide a three-minute presentation — that’s all you’re allowed — and I’m going to present it to the board of directors.”
Also in Microsoft’s case, the company received a similar proposal from the NCPPR. In its report, the think tank highlighted that MicroStrategy outperformed Microsoft by over 300% despite MicroStrategy doing a fraction of the business” of Microsoft.
According to market data, at the time of writing Bitcoin is trading at $97,620 after having lost 2.25% over the last 24 hours and gaining 0.7% over the last seven days.
