Amazon, Microsoft Consider Buying Bitcoin—Other Big Tech Could Follow Suit

• Shareholders of Amazon have urged the company to begin diversifying its books with Bitcoin.
• Microsoft is set to vote on an expansion into Bitcoin on Dec. 10.
• Big Tech giants are still split on digital assets in their portfolios, with some exploring more than others.

Amazon shareholders have submitted a proposal urging the technology giant to explore adding Bitcoin (BTC) to its portfolio.

The move comes ahead of Microsoft shareholders voting on including the world’s largest digital asset in its balance sheet – sparking speculation on whether other Big Tech companies will follow suit.

Amazon Proposes Bitcoin Purchase

On Friday, Dec. 6, Amazon shareholders published  a proposal calling for the conglomerate to consider holding a minimum of 5% of its assets in Bitcoin.

“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,” the proposal read.

Shareholders said that diversifying the balance sheet with Bitcoin will solve the problem of maximizing shareholder value “without taking on too much volatility.”

The proposal highlighted the success of MicroStrategy, a U.S. tech giant currently holding the largest corporate Bitcoin portfolio, with 402,000 coins valued at approximately $40 billion.

According to Bloomberg data , the company’s Bitcoin holdings are larger than the assets and cash of some of the world’s largest firms, including Nike and IBM.

Microsoft To Vote On Bitcoin

The proposal to Amazon comes ahead of Microsoft’s shareholders vote on whether the tech giant will diversify with Bitcoin on Tuesday, Dec. 10.

In a proposal filed by the National Center for Public Policy Research (NCPPR), a conservative think tank, argued that Bitcoin was an “excellent, if not the best, hedge against inflation.”

The think tank claimed institutional adoption was becoming more “commonplace” through spot Bitcoin ETFs.

NCPPR added that Microsoft should invest at least 1% of its total assets into cryptocurrency.

However, Microsoft’s board of directors has remained firmly against the proposal, claiming it has already considered Bitcoin and other cryptocurrencies.

“…Microsoft continues to monitor trends and developments related to cryptocurrencies to inform future decision-making,” the company wrote.

The board called the requested public assessment “unwarranted” and claimed the company already had “strong and appropriate processes to manage and diversify” its investments.

Could Big Tech Follow Suit With Bitcoin?

Some Big Tech firms are already leaning into Bitcoin and the wider crypto industry more than others.

Apple is reportedly planning  to purchase $250 million worth of Bitcoin by the end of 2024 as the iPhone maker explores crypto integration into its products.

The tech giant announced a partnership with crypto exchange Coinbase last week to enable customers to use Apple Pay for purchases.

In a 2022 interview, Apple CEO Tim Cook said he had been personally holding Bitcoin for three years, sparking possibilities of a crypto crossover in the company.

However, not all big tech companies have had a smooth transition into the crypto industry.

Social media and tech giant Meta has had a complicated history with crypto, shuttering its Diem project just three years after its launch in 2019.

The Facebook-based crypto project, formerly known as Libra, aimed to create a blockchain-based digital currency that could be used for payments and money transfers globally.

Diem quickly faced significant global regulatory and political challenges, with governments fearing it could undermine national currencies and facilitate an increase in illicit transactions. Meta has been quiet about crypto since this public failure.

The Impact of Microsoft and Amazon

The direction Microsoft and Amazon take with Bitcoin will likely have a significant impact on the broader crypto industry.

An increase in the world’s largest tech companies adopting Bitcoin will help further solidify the asset in the mainstream, making it a more attractive investment for traditional corporations.

However, rejecting the asset could lead to other legacy firms adopting a similarly conservative approach.

It remains to be seen if the success stories of Tesla and MicroStrategy will inspire other big tech firms.