Amazon logo on the screen of a smart phone
Amazon shareholders have recommended that the company invests in Bitcoin to serve as a hedge against inflation.
The National Center for Public Policy Research submitted the shareholder proposal to Amazon.com, Inc. on Sunday, December 8 for consideration at the 2025 annual shareholder meeting.
According to the document, it isn’t enough for Amazon to make profits for investors, but it is also crucial that the profits be maintained, which has become difficult due to inflation.
A hedge against inflation
Bitcoin has been criticized for years as being a worthless currency with no real value. However, over the years, the value of the asset has appreciated rather rapidly compared to other assets such as gold and silver, which are much older.
Indeed, it has been referred to as digital gold because of its appreciating value, which has earned it the reputation of a store of value.
For instance, over the past year, the asset has appreciated over 131% based on the shareholder proposal submitted to Amazon. It is also currently the asset with the highest return on investment in the world, which makes it a good hedge against inflation.
According to the proposal:
“The average inflation rate in the U.S. over the past four years according to the CPI — a remarkably poor measure of inflation — is 4.95%, peaking at 9.1% in June 2022. In reality, the true inflation rate is significantly higher, with some studies estimating nearly double the CPI at times. So a corporation’s assets have needed to appreciate at those rates just to break even.”
Currently, Amazon, worth $2.3 trillion has most of its assets in cash equivalents and since cash is progressively being ravaged by inflation, shareholders are recommending at least 5% of the company’s assets to be invested in Bitcoin to save their profits.
A good thing for Bitcoin
Amazon shareholders recommending Bitcoin as an alternative investment is a huge plus, not just for Bitcoin but also for the entire crypto space.
With such a proposal, more mega companies are likely to propose the same thing, which means a lot of big money will flow into crypto, giving the industry a major boost.
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