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Shareholders recommend Meta assess Bitcoin as an asset that could be used for treasury.
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The proposal cited cash reserves of $72 billion as being vulnerable to inflation.
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Shareholder Ethan Peck stresses value preservation strategies for Bitcoin.
Meta Platforms Inc.’s shareholders are urging the company to add Bitcoin to its treasury, as they are worried that inflation will eat away at the company’s $72 billion cash reserves.
Shareholder Ethan Peck has led the charge to conduct a formal evaluation to determine if incorporating Bitcoin in Meta’s treasury can help preserve value due to rising inflation. Peck said that Meta’s cash is “consistently devalued” by inflation. He stressed the need for value preservation strategies.
Meta’s latest financial reports show that it has a strong cash position. It had $72 billion of cash and cash equivalents as of September 30th 2024, which is part of its total assets of $256 billion. This allows Meta to consider other investments.
Companies like MicroStrategy, however, have turned to Bitcoin in their treasury strategies as a result of inflation eroding traditional currencies.
Peck’s proposal highlights Bitcoin’s past growth, and its potential to be an inflation hedge when compared to traditional cash or bonds. Bitcoin’s value was 124% higher at the end of 2024 than bonds, with an average return of only 20%.
Bitcoin has grown by 1,265% in the last five years. This is a staggering increase, dwarfing bonds.
Even though these figures are impressive, the incorporation of Bitcoin into corporate treasuries is still controversial. Critics claim that Bitcoin’s price fluctuations and regulatory uncertainty is risky. However, supporters say that it can beat inflation and diversify corporate assets in the long term.
Bitcoin adoption grows among corporations
The proposal also points out a trend of Bitcoin adoption by corporations and their performance. It cited, for example, that MicroStrategy’s stock has outperformed Meta by 2,190% over the past five years after using Bitcoin in its balance sheet strategy.
BlackRock, Meta’s second largest institutional investor, also introduced a Bitcoin ETF, which became the most popular ETF ever. BlackRock has said that putting just 2% of your portfolio into Bitcoin is an excellent way to protect your investments.
Peck believes that, in the end, putting some of Meta’s reserves into Bitcoin would show that they are thinking ahead and aligned with what other leading technology and finance companies do.
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