What if Amazon added Bitcoin to its balance sheet? With BTC up 125% this year, some shareholders argue it’s the perfect moment to explore the crypto market.
Amazon under pressure to add Bitcoin to reserves
Amazon, one of the largest and most influential companies in the world, is facing increasing pressure from its shareholders to diversify its financial reserves by adding Bitcoin (BTC) to the mix.
Shareholders have pushed for Amazon to at least consider holding a small percentage of its reserves in Bitcoin — just 5%, according to one proposal from the National Center for Public Policy Research.
This suggestion stems from a growing trend seen in other major corporations, such as MicroStrategy, Tesla, and Block, all of which have embraced Bitcoin as a hedge against inflation and a way to potentially enhance long-term shareholder value.
Bitcoin remains a volatile asset, often subject to dramatic swings in price. However, proponents argue that, much like Amazon’s own stock, Bitcoin’s volatility should not overshadow its potential to outperform traditional assets like bonds.
As of Dec. 9, Bitcoin has already proven to be a strong performer, having surged by 125% this year alone, far surpassing the performance of traditional investment vehicles, including gold and the S&P 500.
In comparison, MicroStrategy, which has heavily invested in Bitcoin, has seen its stock price nearly 450%, outperforming Amazon’s own 51% gain over the same period.
Shareholders argue that with $585 billion in total assets — $88 billion of which is held in cash and low-yielding investments like bonds—Amazon should reconsider its investment strategy.
Microsoft facing its own Bitcoin dilemma
Not just Amazon — Microsoft is also facing a similar crossroads when it comes to Bitcoin. As the BTC continues its impressive surge, recently topping $100,000, Microsoft shareholders have urged the company to follow in the footsteps of firms like MicroStrategy by adding Bitcoin to its balance sheet.
The proposal, titled “Assessment of Investing in Bitcoin,” will be up for a vote on Dec. 10. It’s backed by the same group, the NCPPR.
Yet, Microsoft’s board has advised against the proposal. Co-founder Bill Gates, who has been vocal about his scepticism of crypto assets, has warned that the current crypto market is driven by what he calls the “greater fool theory” — essentially, a speculative bubble.
Gates’ approach is reflected in the board’s stance, with many members believing Microsoft is already making thoughtful investment decisions without venturing into such volatile territory.
In fact, MicroStrategy’s executive chairman, Michael Saylor, has directly lobbied Microsoft’s board to consider Bitcoin, arguing that it’s a crucial digital transformation and one of the highest-performing assets corporations can hold.
This upcoming vote at Microsoft could set an important precedent. If the proposal passes, it would signal that mainstream companies are beginning to seriously consider Bitcoin as a legitimate and valuable part of their financial strategy.
MicroStrategy’s shift to Bitcoin
MicroStrategy, once known primarily as a software and business intelligence company, has undergone a radical transformation in recent years.
Historically, the company focused on providing enterprise analytics solutions, helping organizations make data-driven decisions.
But in 2020, MicroStrategy took a bold and unconventional turn — it began shifting large portions of its capital into Bitcoin, a move that has since redefined its identity.
The pivot was driven by concerns over the depreciating value of cash in a low-interest, inflationary environment. MicroStrategy’s leadership, led by then-CEO Michael Saylor, argued that Bitcoin, as a deflationary asset with a capped supply, offered a far better store of value.
The firm began buying Bitcoin aggressively, describing it as “digital gold” and a cornerstone of its corporate treasury strategy.
MicroStrategy’s Bitcoin buying spree accelerated rapidly. While it took nearly a year to accumulate its first 100,000 bitcoins, the pace picked up significantly in subsequent years.
As of Dec. 9, MicroStrategy holds a staggering 423,650 bitcoins, purchased at an average cost of $60,324 per coin, with a total investment of $25.6 billion, making it one of the largest corporate holders of Bitcoin, surpassing even Nvidia Corp.’s cash reserves and most non-financial S&P 500 companies.
The impact on MicroStrategy’s stock has been dramatic. Over the past five years, MSTR’s share price has surged nearly 2,500%, trading at $377 as of Dec. 9. Earlier in November, it hit a 52-week high of $543 before experiencing a retracement.
While Bitcoin’s price increases have boosted the company’s valuation, the volatility of the asset means that MicroStrategy’s fortunes are now closely tied to the ups and downs of the crypto market.
Bitcoin could change corporate treasury practices
If companies like Amazon and Microsoft integrate Bitcoin into their reserves, it could redefine corporate treasury practices on a global scale.
Traditionally, businesses diversify their financial holdings across cash, bonds, equities, and other low-risk instruments to manage risk and ensure liquidity during economic shifts.
Including Bitcoin — a digital asset with a finite supply — might seem unconventional, but it aligns with the growing trend of seeking inflation-resistant and high-performing alternatives.
The approval of the first spot Bitcoin ETF in January was a key milestone for institutional adoption. It legitimized Bitcoin as a regulated investment vehicle and sparked a wave of interest from both corporates and individual investors.
As of Dec. 9, combined spot Bitcoin ETFs now hold over $115 billion in assets under management (AUM), making them some of the fastest-growing ETFs in financial history.
What’s even more remarkable is the consistent demand: since November 29, spot Bitcoin ETFs have recorded only net positive inflows, pulling in over $3 billion in just a matter of days.
For companies like Amazon and Microsoft, adding Bitcoin to their reserves could enhance their financial strategies in multiple ways. Even a small allocation — say 5% of their reserves — could offer huge upside potential, especially as Bitcoin’s long-term performance continues to outpace traditional assets like gold and bonds.
Furthermore, holding Bitcoin would align these corporations with the rapidly growing ecosystem of institutional adoption, a trend highlighted by the explosive growth of ETFs and the entry of major players like BlackRock into the Bitcoin market.
The ripple effects of such a decision would be profound. If the world’s most influential companies take this step, it could normalize Bitcoin as a treasury asset across industries, encouraging smaller companies to follow suit, potentially driving Bitcoin’s price higher due to increased demand.
Crypto’s growing role and the road ahead
In the last few years, the crypto world has changed dramatically, and a lot of this shift can be traced back to how major figures, companies, and governments have started to get involved.
A key example is the recent appointment of David Sacks as the AI and Crypto Czar by President-elect Donald Trump, hinting how both AI and blockchain are now seen as critical areas for innovation, and it shows how much more seriously the U.S. government is taking these technologies.
The vast adoption of crypto, in particular, is similar to how other tech innovations, like the internet or cloud computing, went from niche to mainstream. In the 90s, companies were hesitant about the internet, but now it’s an essential part of doing business. The same is starting to happen with crypto.
As more companies, from tech giants to financial firms, look for ways to gain exposure to crypto, it’s clear that we’re entering a new phase. The next few years will likely see these shifts become even more normalized, and in the process, crypto could become as ubiquitous as any other asset class in corporate treasuries and investment strategies.
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