- A Meta shareholder suggests Bitcoin could protect reserves from inflation and outperform cash and bonds.
- Bitcoin rose 124% in a year and 1,265% in five years showing its growth potential.
- The proposal urges Meta to assess Bitcoin as a treasury asset to align with its innovative leadership.
A Meta shareholder proposed an evaluation of Bitcoin as part of the company’s treasury strategy. The proposal highlights the strong performance of Bitcoin compared to cash and bonds.
By December 2024, the price of Bitcoin increased by 124% in one year. Over five years, Bitcoin rose by 1,265%. Bonds delivered only a 20% average return during the same period. The shareholder claims this shows the potential of Bitcoin as a superior asset.
Concerns About Inflation
The proposal points out that the cash reserves of Meta are facing depreciation due to inflation. Meta holds 72 billion dollars in cash out of its 256 billion dollars in total assets. The shareholder suggests that Bitcoin could help preserve value despite its volatility.
The proposal mentions MicroStrategy as an example of Bitcoin’s success. MicroStrategy reported a 17,000 percent increase in equity after adopting Bitcoin. Block outperformed both the Nasdaq index and Meta stock. These cases demonstrate the potential benefits of Bitcoin as a treasury asset.
Bitcoin’s Growing Institutional Adoption
The proposal highlights Bitcoin’s increasing adoption by institutions. BlackRock launched a Bitcoin ETF that became highly popular. Other companies, like Genius Group, purchased Bitcoin for their reserves. Governments such as New Hampshire are also exploring Bitcoin as a reserve asset.
The shareholder notes that Meta’s leadership has shown interest in blockchain. Mark Zuckerberg and Marc Andreessen have supported blockchain technology in the past. The proposal suggests that Bitcoin aligns with Meta’s innovative approach.
Call for Action
The proposal urges Meta’s board to evaluate Bitcoin’s potential benefits. It calls for a detailed assessment of Bitcoin as part of Meta’s reserves. The shareholder believes this step could strengthen its reputation as a forward-thinking company.
The proposal acknowledges that similar efforts failed at Microsoft. However, it suggests that Meta could lead by setting an example for other corporations.
