Amazon Shareholders Advocate Bitcoin Treasury

CRYPTO
Amazon Shareholders Advocate Bitcoin Treasury

Amazon shareholders, led by the National Center for Public Policy Research (NCPPR), are urging the company to diversify its treasury by allocating at least 5% of its assets to Bitcoin (BTC). The proposal emphasizes Amazon's fiduciary responsibility to protect and grow shareholder value, arguing that the company’s current asset mix of cash, cash equivalents, and bonds isn't sufficient to combat inflation.

Citing Bitcoin’s 134% surge this year and its outperformance of major assets like gold and the S&P 500, the NCPPR compared Amazon’s potential strategy to MicroStrategy (MSTR), whose BTC holdings have propelled its stock price by over 500%, far surpassing Amazon’s 49% rise. "Corporations have a responsibility to maximize long-term shareholder value," the proposal states, suggesting that Bitcoin’s proven resilience and growth potential make it a strong addition to Amazon’s balance sheet.

The proposal further highlighted Bitcoin adoption by firms like Tesla and Block and pointed to the inadequacy of Amazon's $88 billion in cash and marketable securities to adequately shield shareholder value. NCPPR recently submitted a similar proposal to Microsoft, with shareholders set to vote on Dec. 10.

TECH
OpenAI Faces Musk-Sacks Challenge

OpenAI, the $157 billion AI startup led by Sam Altman, faces significant challenges with David Sacks and Elon Musk poised to shape AI policy under the Trump administration. Sacks, a former PayPal COO and vocal OpenAI critic, was recently appointed AI Czar. Musk, Altman’s former co-founder at OpenAI and now head of xAI, joins as leader of the Department of Government Efficiency. This duo’s influence could directly impact OpenAI’s future.

Sacks and Musk have criticized OpenAI’s shift from nonprofit to for-profit, with Sacks labeling it a “piranha for-profit company.” Their new roles may enable them to steer government AI contracts toward their own ventures while tightening regulations on competitors like OpenAI.

Meanwhile, OpenAI is restructuring to become a for-profit benefit corporation and plans to remove Microsoft’s restrictive AGI clause, opening the door for more investments. With government regulation becoming critical, Musk’s warnings about AGI risks and Sacks’ disdain for restrictive policies may shape a competitive AI landscape.

Altman, aiming to ease tensions, congratulated Sacks publicly, only to be met with Musk’s mocking response, underlining the precarious position OpenAI now finds itself in. This delicate moment could determine its trajectory amid shifting AI policies.

FINANCE
U.S. Markets Near Bubble Territory

U.S. dominance in global financial markets has reached unprecedented levels, signaling a potential bubble of epic proportions, according to Ruchir Sharma, chair of Rockefeller International. In a recent Financial Times column, Sharma warned that global investors are pouring more money into the U.S. than ever before, creating imbalances.

U.S. companies now make up 70% of the leading global stock index, despite the U.S. economy comprising just 27% of global GDP. Since 2009, U.S. markets have outperformed the rest of the world by more than 4-to-1, even when adjusted for tech giants and market cap weighting.

In 2024, $1 trillion in foreign capital flowed into U.S. debt markets, dwarfing the eurozone. America also controls over 70% of global private equity and credit.

Sharma compared today’s trends to past market manias like the roaring 1920s, warning that the current imbalance could harm smaller economies by weakening currencies and forcing rate hikes.

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.