Amazon Stock Hits Fresh Record High On Shareholders Call To Add Bitcoin To $88 Billion Treasury: Retail Onboard

Amazon.com Inc. stock rose nearly 1% in morning trade on Monday, to hit a fresh all-time high of $230 after a coalition of shareholders petitioned the e-commerce giant to allocate a portion of its assets to Bitcoin.

The group, led by the National Center for Public Policy Research (NCPPR), is urging Amazon to take a page from MicroStrategy’s playbook and do its “fiduciary duty” by allocating at least 5% of its $88 billion in cash reserves to Bitcoin as a hedge against inflation.

The shareholders argue that Bitcoin has significantly outperformed traditional investments like corporate bonds, citing a 131% rise over the past year.

They claim diversifying into Bitcoin could protect Amazon’s cash reserves from inflation erosion and enhance shareholder value.

“In periods of consistent, and often rampant, inflation, a company’s value is measured not only by how profitable its primary business is, but also by how well it stores the profits from that business,” the proposal said.

Amazon.com Inc.'s stock price movement year-to-date. | Source: TradingView

The proposal points out that companies like MicroStrategy have seen substantial gains by incorporating Bitcoin into their treasury strategies, outperforming Amazon's stock by 537% over the last year.

Meanwhile, retail investors feel that Amazon is the most likely big tech company to adopt Bitcoin, according to an ongoing Stocktwits poll.

Stocktwits poll on Bitcoin adoption among big tech companies on Dec 9 as of 11:30 a.m. ET | Source: Stocktwits

If adopted, this strategy could position Amazon alongside other tech giants like Microsoft and Tesla, which have also considered or implemented holding Bitcoin.

The NCPRR previously sent a similar proposal to Microsoft to allocate a portain of its assets to Bitcoin. The proposal will be voted on during the annual shareholder meeting on Tuesday.

Microsoft’s Board of Directors has recommended that shareholders vote against the proposal, arguing that the company already has robust processes in place for managing its treasury and Bitcoin carries significant volatility risk.

Amazon.com Inc. Sentiment and Message Volume on Dec 9 as of 11:15 a.m. ET | Source: Stocktwits

Meanwhile, retail sentiment around Amazon flipped to ‘bullish’ (58/100) from ‘bearish’ a day ago, while message volumes resumed to ‘normal’ levels with users applauding the proposal.

While Amazon has not publicly commented on the petition, it has shown cautious interest in blockchain technology.

In 2019, the company launched Amazon Managed Blockchain, a service to help businesses create and scale blockchain networks. However, its stance on cryptocurrencies remains measured.

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