Shareholder proposal urges Meta to allocate part of its $72 billion cash reserves to Bitcoin (BTC) to hedge against currency devaluation, states Ethan Peck.
Written by Léa - Last updated on 01/14/2025 at 13:07 by Léa
Shareholders of Meta, led by Mark Zuckerberg, have recently made a bold request: that the company evaluate the opportunity to add Bitcoin (BTC) to its corporate treasury. This initiative, notably championed by shareholder Ethan Peck, aims to analyze if this decision would be in the best interest of investors.
According to Peck, Meta currently holds $72 billion in cash reserves, a substantial amount that he describes as “constantly devalued” due to inflation. To counter this erosion of value, integrating BTC could present an innovative solution, positioning Meta as a pioneering player in institutional cryptocurrency adoption.
As per the proposal, Meta is currently losing 28% of its cash assets due to inflation. Faced with this value erosion, BTC appears as an attractive alternative as a safe-haven asset.
Indeed, over the past 5 years, Bitcoin has outperformed bonds by 1262%, demonstrating its ability to protect capital against depreciation.
Additionally, there are already close ties between Meta and Bitcoin. CEO Mark Zuckerberg named his goats “Bitcoin” and “Max”, and director Marc Andreessen sits on both Meta’s board and Coinbase.
This suggests that Meta’s leadership team is familiar with BTC and may be inclined to adopt it for their own reserves.
This proposal is part of a broader movement where shareholders are pushing large tech companies to diversify their reserves with Bitcoin. In 2024, the same entity behind the Meta proposal submitted similar requests to Microsoft and Amazon.
However, these proposals have been rejected by shareholders thus far, with companies likely wary of BTC’s volatility and its limited yield opportunities. Nevertheless, the increasing adoption of Bitcoin by corporations could prompt Meta to seize this opportunity and become a trailblazer in this field.
Facing the erosion of its cash reserves, Meta has the opportunity to innovate by adopting Bitcoin as a reserve asset. Although this type of proposal still faces resistance from other tech giants, Meta’s expertise in BTC within its leadership team could enable it to take the lead.
Such a decision would send a strong signal to shareholders and position the company as a leader in institutional Bitcoin adoption.
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Léa is part of the InvestX team which supports members in their training. She is also a crypto enthusiast who follows the market closely. For the InvestX.fr site, she writes articles to help readers decipher the news and what happens day after day in the world of blockchains.
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