A shareholder of Meta Platforms has proposed evaluating the use of Bitcoin as an asset for the corporate treasury.
Proposal Overview
Ethan Peck, an employee of The National Center for Public Policy Research, submitted the proposal on behalf of his family's shares, urging Meta to consider Bitcoin as a corporate treasury asset. Peck stated that cash and bonds in Meta's reserves are prone to depreciation due to inflation.
Arguments for Bitcoin
According to Peck, Bitcoin rose by 124% in 2024, outperforming other assets. Over the past five years, Bitcoin has appreciated by 1,265%. Peck suggested that integrating Bitcoin into Meta’s treasury could maintain shareholder value despite Bitcoin's volatility.
Corporate Hesitance Towards Bitcoin
Despite its advantages, other large tech companies remain cautious about adopting Bitcoin as a treasury asset. Microsoft shareholders rejected a similar proposal in December 2024. The main concern is Bitcoin's volatility and limited yield opportunities.
The idea of using Bitcoin as a reserve asset continues to garner interest and discussion among companies and investors. Meta faces the decision of whether to become one of the firms integrating Bitcoin into its financial strategies.
