Meta Shareholders Propose Adding Bitcoin to Corporate Treasury
Meta shareholders have submitted a proposal urging the tech giant to consider adding Bitcoin as a corporate treasury asset.
The proposal, authored by Ethan Peck, an early investor at Meta and member of The National Center for Public Policy Research (NCPPR), comes as part of a growing trend among major corporations and their investors to explore Bitcoins potential as a reserve asset.
The proposal, titled Bitcoin Treasury Assessment, outlined why Meta should evaluate Bitcoin as part of its asset allocation strategy. It highlighted Metas $72 billion in cash, cash equivalents, and marketable securities as of September 2024, arguing that such assets erode in value due to inflation and low bond yields.
Since cash is consistently being debased and bond yields are lower than the true inflation rate, 2.28% of Metas total assets are consistently diminishing shareholder value simply by sitting on the balance sheet, the proposal asserted
Peck also expanded on this point in an interview with Pahueg, host of the Less Noise More Signal YouTube channel. Corporations are holding a lot of cash and buying a lot of bonds, but those cash reserves and bonds are just sitting there on the balance sheet, losing value, He explained. Theyre not doing anything to address it. The best solution to that is Bitcoin.
The proposal further noted Meta founder and CEO Mark Zuckerbergs personal connection to Bitcoin, famously naming one of his goats Bitcoin. Meta board member Marc Andreessen, who has publicly praised Bitcoin, is also a director at Coinbase, signaling a potential alignment between the companys leadership and the cryptocurrency.
Meta has always been a forward-thinking, innovative company not a company that follows tradition but one that sets it, the proposal read, urging Meta to explore Bitcoin as a modern alternative to traditional treasury strategies. It also pointed to BlackRock, Metas second-largest institutional shareholder, which has advised that a 2% Bitcoin allocation is reasonable.
This development aligns with similar shareholder proposals at Amazon and Microsoft, both spearheaded by NCPPR. Meanwhile, the Bitcoin community has also urged Dell founder Michael Dell to consider a Bitcoin strategy. Last year, Dell fueled speculation with cryptic posts on X, including the phrase, Scarcity creates value, a sentiment often associated with Bitcoins fixed supply of 21 million coins, which even caught the attention of Bitcoin advocate Michael Saylor.
Bitcoins rising adoption among corporations has gained traction following its recent surge to a record high of $108,268. Proponents argue that Bitcoin offers long-term value and inflation resistance despite its volatility. Companies like MicroStrategy and Tesla have already adopted Bitcoin as part of their treasury strategies, with MicroStrategys stock outperforming Metas by over 2,000% in the past five years.
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Text source: ZyCrypto
