Meta Shareholder Proposes Bitcoin Adoption For Corporate Treasury
A shareholder of Meta Platforms Inc. has submitted a proposal urging the company to assess Bitcoin adoption for its corporate treasury.
The proposal was filed by Ethan Peck, an employee of The National Center for Public Policy Research, on behalf of his family’s shares.
This marks a notable move as Meta joins other tech firms approached with similar Bitcoin-related proposals, including Microsoft and Amazon.
According to Peck, cash and bonds in Meta’s reserves are exposed to depreciation due to inflation.
He said, with historical perspective, Bitcoin can serve as a protection against the devaluation of currencies.
Peck’s submission added that, with cash and cash equivalents of $72 billion as of September 30, 2024, Meta may be better off diversifying its investments.
Proposal Highlights Bitcoin’s Performance Against Traditional Assets
The shareholder proposal also focused on the fact that Bitcoin is a more profitable investment in the long term than bonds and cash.
According to Peck, the price of Bitcoin rose by 124% in 2024 alone. This is way higher than most other assets.
For the past five years, Bitcoin has appreciated by 1,265%. While bonds fell behind with an average return gap of 1,245%.
The proposal also mentioned that inflation erodes the value of cash and therefore can negatively affect shareholder return.
Peck revealed that putting Bitcoin into Meta’s treasury could be useful in maintaining shareholder value despite Bitcoin’s volatility.
He provided examples of businesses like MicroStrategy that have benefited from a 17,000% equity rise from Bitcoin investment.
Peck tied the Bitcoin treasury proposal to Meta’s origins and the company’s past experience in backing blockchain technology.
He cited CEO Mark Zuckerberg’s giving names Bitcoin and Max to his goats as evidence of the CEO’s direct interest in the cryptocurrency.
