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Highlights
- Meta (META) shareholder proposes using company cash reserves for Bitcoin (BTC).
- Bitcoin is seen as a hedge against inflation and a potential outperformer over traditional assets.
- Meta has not yet made a decision on the proposal, adding uncertainty to the move.
Meta (NASDAQ: META), one of the leading tech giants, is at the center of a new financial proposal that could spark a significant shift in how companies manage their treasury assets. Ethan Peck, a shareholder in Meta, has submitted a proposal advocating that the company convert a portion of its large cash reserves—amounting to US$72B (AU$116B)—into Bitcoin (BTC). This proposal, called the Bitcoin Treasury Assessment, is gaining traction on social media and could influence how other corporations approach their financial strategies.
Peck's proposal hinges on the growing popularity of cryptocurrency, particularly Bitcoin, as a valuable hedge against inflation and currency devaluation. With global inflation risks on the rise, many investors have turned to Bitcoin as a way to safeguard their assets. According to Peck, the significant cash reserves held by Meta (META) are susceptible to loss in value over time, especially when considering how inflation erodes purchasing power.
In support of his claim, Peck highlights the impressive performance of Bitcoin, particularly its substantial growth in recent years. Bitcoin has shown remarkable returns, surpassing more traditional investments like bonds. It soared by over 124% in 2024 alone, and an astounding 1,200% over the past five years. For Peck, the decision to incorporate Bitcoin into corporate treasuries isn't just about innovation; it’s a move aligned with Meta's core values—fostering forward-thinking and embracing new technologies.
Peck isn’t alone in pushing for such corporate adoption of Bitcoin. Numerous cryptocurrency advocates have long argued for companies to diversify their treasury holdings by allocating a portion of cash reserves into Bitcoin. Their rationale stems from Bitcoin’s potential to outperform more conventional financial instruments, particularly in times of economic uncertainty. However, not all companies are enthusiastic. For instance, shareholders in Microsoft (NASDAQ: MSFT) recently rejected a proposal aimed at investing in Bitcoin, citing its high volatility as a key concern.
As of now, Meta has yet to issue any public response to the proposal, leaving its stance on the matter uncertain. If Meta does choose to allocate part of its cash reserves into Bitcoin, it would join a small but growing group of companies that view Bitcoin as an innovative addition to corporate financial strategies. However, whether this would prompt further widespread corporate interest remains to be seen. For now, investors and tech enthusiasts will be watching closely to see how the proposal unfolds.
