Key Takeaways
- A Meta shareholder proposes adding Bitcoin to the company’s $72 billion treasury to combat inflation and enhance shareholder value.
- The proposal suggests Bitcoin’s superior long-term performance and positions Meta to lead the institutional adoption of Bitcoin.
- Meta is urged to follow BlackRock’s 2% Bitcoin allocation strategy, citing its strong returns and growing corporate adoption appeal.
A Bold Proposal for Meta’s Treasury Strategy
A Meta shareholder, Ethan Peck, has proposed that the company allocate a portion of its $72 billion cash reserves to Bitcoin, aiming to enhance shareholder value and counter inflationary risks.
Peck submitted this Bitcoin proposal on behalf of his family’s shares in the company, as disclosed by analyst Tim Kotzman in a post on X.
He suggested that adopting Bitcoin aligns with Meta’s position as a tech leader, arguing that embracing Bitcoin would allow the company to shape financial trends instead of merely following them.
Bitcoin as an Inflation-Resistant Asset
Peck argued that 28% of Meta’s cash assets are losing value due to inflation and underperforming bond yields, stressing that Bitcoin offers a superior alternative.
In his proposal, Peck stated that replacing even a small percentage of these assets with Bitcoin could yield better returns over time despite its short-term volatility.
He described Bitcoin as 'the most inflation-resistant store of value available,' which could preserve Meta's cash and deliver higher shareholder benefits.
Institutional Crypto Adoption and Proposed Allocation
Pointing to institutional trends, Peck highlighted how many public companies are integrating Bitcoin into their Treasury strategies, with BlackRock—a major Meta investor—leading by example.
He proposed a 2% Bitcoin allocation for Meta, similar to BlackRock’s approach, emphasizing Bitcoin’s impressive historical performance compared to traditional assets like bonds.
Peck stressed that Bitcoin consistently outpaced bonds, delivering returns of 1,265% in the past five years, far outperforming traditional financial tools.
By adopting Bitcoin, Peck concluded, Meta could position itself as an institutional leader in cryptocurrency and secure long-term financial gains for its shareholders.
