Meta Faces Call to Diversify Treasury With Bitcoin Adoption
A shareholder of social media giant Meta has proposed a bold shift in the company’s financial strategy, suggesting the adoption of Bitcoin as the company’s financial asset.
The move follows similar proposals to major companies such as Microsoft and Amazon, underscoring the growing push for Bitcoin adoption by institutional players.
On January 10, Bitcoin YouTuber Tim Kotzman revealed that Meta shareholder Ethan Peck submitted a proposal urging the company to allocate part of its $72 billion cash reserves to Bitcoin.
“Shareholder Ethan Peck, an employee of the National Center for Public Policy Research, the organization that submitted the application to MSFT and AMZN, told me he submitted the application on behalf of his family’s holdings,” Kotzman additional.
Pecker raised the following concerns in his proposal: inflation Eroding the value of Meta’s cash holdings. He believes that Bitcoin performs strongly compared to traditional assets and can serve as a hedge against inflation while increasing shareholder value.
Peck cited Bitcoin’s impressive returns, noting growth of 124% in 2024 and a staggering 1,265% growth in five years. These numbers are far Modest yields that exceed bonds and other traditional financial instruments.
He also highlighted Meta’s indirect exposure to cryptocurrencies through the company’s second-largest institutional investor, BlackRock, which has backed allocating 2% of Bitcoin to businesses. BlackRock is an issuer of IBIT, the largest spot Bitcoin exchange-traded fund (ETF) in the United States.
At the same time, the proposal sparked discussion in the cryptocurrency and corporate communities. Jeff Park of Bitwise speculates Meta CEO Mark Zuckerberg’s Skepticism about traditional systems may be consistent with Bitcoin’s decentralized ethos.
“If Zack realizes this through his experiences in 2020-2024, he could become a major force in the cryptocurrency space. Watch closely — his next move could rewrite Meta’s playbook,” Parker point out.
In fact, Zuckerberg owns 13.5% of Meta’s common stock and controls more than 50% of the company. vote Power may play a key role in this decision.
Additionally, Peck’s proposal is consistent with a broader movement advocating the use of Bitcoin in corporate finance. In 2024, similar moves were targeted at Microsoft and Amazon, with varying results. Microsoft shareholders rejected the ideaciting Bitcoin’s volatilityalthough Amazon has not yet acted on the proposed 5% allocation.
Still, cryptocurrency advocates like Erik Voorhees believe businesses will gain more from their Bitcoin investments than governments. He believes that adopting Bitcoin will not only preserve value but also allow companies to thrive in an increasingly digital economy.
“Let’s advocate more for corporate treasuries to buy Bitcoin rather than nation-states doing so. The former are worth it because they create value. The latter are not worth it and destroy it,” Voris wrote.
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