Meta Shareholders Proposed Adding Bitcoin to it’s Treasury Asset
Ethan Peck, representing his family's shares, proposed that Meta convert a portion of its substantial $72 billion cash and short-term cash equivalent holdings into Bitcoin
A recent shareholder proposal submitted to Meta Platforms, Inc. (Meta) has ignited a discussion regarding the strategic allocation of Bitcoin (BTC) within the treasury reserves of large technology corporations.
Ethan Peck, representing his family’s shares, proposed that Meta convert a portion of its substantial $72 billion cash and short-term cash equivalent holdings into Bitcoin. He cited concerns about inflation-induced erosion of asset value and the potential for Bitcoin to act as a hedge against this devaluation.
Meta Incurred Losses Rise to 28% from Inflation
Peck’s proposal highlights Meta’s significant losses due to inflation, estimating a 28% attrition of cash assets over time. He presented Bitcoin’s substantial outperformance of bonds (1,262% over the past five years) as compelling evidence supporting his proposed asset diversification strategy.
Peck’s proposal subtly highlights a perceived incongruity: Meta CEO Mark Zuckerberg, whose personal pets are reportedly named “Bitcoin” and “Max,” and Coinbase director Marc Andreessen personally benefit from cryptocurrency investments, yet their company seemingly hesitates to similarly benefit its shareholders.
However, the proposal follows similar initiatives undertaken by the National Center for Public Policy Research (NCPPR), a Washington, D.C.-based think tank advocating free-market policies. In 2024, NCPPR submitted analogous proposals to Microsoft and Amazon, urging the allocation of a percentage of their significant assets to Bitcoin.
Shareholders rejected Microsoft’s proposal to allocate at least 1% of its $484 billion assets in a December 10, 2024 vote. A similar proposal for Amazon, targeting the company’s April 2025 shareholder meeting, is currently pending.
Big Tech Firms Hesitate to Embrace Bitcoin
The NCPPR’s rationale extends beyond simple return potential. The organization argues that traditional inflationary metrics, such as the Consumer Price Index (CPI), inadequately reflect the true rate of inflation, potentially underestimating it by a significant margin.
However, the hesitancy of Big Tech firms to embrace Bitcoin as a treasury asset is palpable. According to Nick Cowan, CEO of Valereum, this reluctance stems from a confluence of factors inherent to these companies’ unique positions.
Moreover, their size, established market dominance, and high profitability within their respective sectors contribute to a perceived diminished need for such unconventional asset diversification. Furthermore, Bitcoin’s inherent volatility and the lack of readily available yield-generating mechanisms deter substantial allocations, particularly at the 5% or higher levels advocated by some proposals.
