Meta Platforms Inc. shareholders are urging the company to consider adding Bitcoin to its Treasury. They are concerned about inflation diminishing the value of Meta’s $72 billion cash reserves.
Shareholder Ethan Peck is advocating for a formal evaluation of Bitcoin’s potential role in preserving value amid rising inflation. He argues that inflation is consistently reducing the purchasing power of Meta’s cash holdings.
As of September 30, 2024, Meta reported $72 billion in cash and cash equivalents, part of its total assets of $256 billion. This strong cash position allows for the exploration of alternative investments. Companies like MicroStrategy have already adopted Bitcoin as a strategy to manage treasury amid inflation concerns.
Peck highlights Bitcoin’s impressive growth as an inflation hedge compared to traditional cash and bonds. By the end of 2024, Bitcoin had increased by 124%, while bonds returned only about 20%. Over the past five years, Bitcoin surged by 1,265%, far exceeding bond returns.
Despite these positive figures, incorporating Bitcoin into corporate treasuries is debated. Critics point to Bitcoin’s volatility and regulatory risks, while supporters argue it can outpace inflation and diversify assets. The proposal also notes a trend of corporate Bitcoin adoption, with MicroStrategy’s stock outperforming Meta’s by 2,190% since it began using Bitcoin in its strategy.
Additionally, BlackRock, Meta’s second-largest institutional investor, launched a highly successful Bitcoin ETF and suggested that allocating 2% of a portfolio to Bitcoin is a wise investment strategy. Ultimately, Peck believes investing a portion of Meta’s reserves in Bitcoin would demonstrate forward-thinking and align the company with other leading tech and finance firms.
