Meta Shareholder Advocates for Allocating Dollar Reserves to Bitcoin

Ethan Peck, who’s a Meta shareholder, has submitted a proposal urging the company to convert part of its US$72B (AU$116B) cash reserves into Bitcoin (BTC). 

Bitcoin Treasury Assessment, as the proposal is titled, is gaining popularity on social media due to its focus on financial strategy and cryptocurrency adoption. Peck presented it on behalf of his family’s shares in Meta. 

He argues that the company’s culture, which heavily revolves around innovation, matches with Bitcoin, especially for its performance and how it addresses issues like inflation risks.

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Additionally, Peck argues that the company’s large cash holdings are at risk of devaluation due to inflation, arguing that Bitcoin offers a solution as a hedge, claiming that Bitcoin significantly outperforms traditional financial instruments like bonds with impressive returns of over 124% in 2024 —and over 1,200% over the past five years.

Peck wrote:

Mark Zuckerberg named his goats ‘Bitcoin’ and ‘Max.’ Meta director Marc Andreessen has praised Bitcoin and is also a director at Coinbase. Do Meta shareholders not deserve the same kind of responsible asset allocation for the Company that Meta directors and executives likely implement for themselves?

Ethan Peck, Meta shareholder

This is not an isolated initiative. Other Bitcoin supporters have encouraged corporations to use their treasuries and buy some BTC. They often share the same premise —Bitcoin as a hedge against inflation, currency devaluation, better performance, etc. 

But not all corporations are keen. For example, Microsoft shareholders rejected Michael Saylor’s proposal of investing in BTC because it was “too volatile”. 

Related: UK Judge Rejects $1.19 Billion Bitcoin Recovery Case, Citing Unrealistic Success Odds

Meta has yet to issue a public response, leaving the proposal’s outcome and its potential impact on the company’s financial strategy uncertain. But If Meta were to adopt Bitcoin as a treasury asset, it would join a growing number of companies exploring the OG crypto as part of their financial strategies. 

It’s too early to say if such a move could motivate other corporations to invest in Bitcoin and turn it into the darling of corporate finance.