A shareholder has proposed that Meta Platforms incorporate Bitcoin into its treasury strategy to hedge against inflation and diversify its assets.
This idea is gaining traction as companies like MicroStrategy and Tesla demonstrate the potential benefits of Bitcoin as a treasury asset.
The proposal, led by Ethan Peck, highlights Bitcoin’s outperformance compared to traditional assets like bonds and its ability to preserve value over time.
The Case for Bitcoin in Meta’s Treasury
Ethan Peck, a Meta shareholder and a member of the National Center for Public Policy Research, has suggested that Meta invest part of its $72 billion cash and short-term savings into Bitcoin.
Peck argues that inflation is eroding the value of Meta’s cash reserves, with an estimated 28% reduction in purchasing power over time.
To address this, he proposes Bitcoin, citing its historical performance as a store of value and hedge against inflation. Peck pointed out that Bitcoin has outperformed bonds by a staggering 1,262% over the past five years, making it a compelling option for Meta’s treasury strategy.
Peck also highlighted endorsements within Meta’s leadership. CEO Mark Zuckerberg named his goats “Bitcoin” and “Max,” showing familiarity with the cryptocurrency. Furthermore, Marc Andreessen, a Meta director and Coinbase board member, has publicly praised Bitcoin.
Peck believes that if Meta’s directors and executives recognise Bitcoin’s potential for personal investment, the company should consider the same approach for its treasury. He framed this proposal as a way to ensure responsible asset allocation and safeguard Meta’s financial health.
The proposal is not Peck’s first attempt to advocate for Bitcoin adoption. While he submitted the Meta proposal using his family’s shares, the National Center for Public Policy Research has previously made similar pitches to other major companies, including Microsoft and Amazon.
The initiative reflects a broader effort to encourage institutional adoption of Bitcoin as a hedge against inflation and a strategic investment.
Big Tech’s Mixed Response to Bitcoin Treasury Proposals
The idea of adopting Bitcoin as a treasury asset has seen mixed reactions from big tech companies.
On December 10, 2024, Microsoft shareholders rejected a proposal from the National Center for Public Policy Research, which suggested allocating at least 1% of the company’s $484 billion in assets to Bitcoin.
A similar proposal was presented to Amazon shareholders a day earlier, recommending Bitcoin as a means to diversify their treasury. Amazon is expected to address the proposal during its annual meeting in April 2025.
Proponents of these proposals argue that traditional measures of inflation, such as the Consumer Price Index (CPI), understate the true impact of inflation. They claim the real inflation rate is double the CPI’s estimates, making Bitcoin an attractive alternative to protect corporate wealth.
Nick Cowan, CEO of fintech company Valereum, noted that big tech companies differ in their approach to innovation and financial strategies. He observed that Microsoft tends to be more cautious and risk-averse, which likely influenced its rejection of the proposal.
In contrast, Amazon is known for embracing innovation and exploring new opportunities, potentially making it more receptive to Bitcoin.
Cowan suggested that Amazon might consider small experimental allocations, similar to Tesla’s strategy, as a way to test the waters without overcommitting.
Tesla’s experience with Bitcoin serves as a case study for companies considering this path. In 2021, Tesla purchased $1.5 billion worth of Bitcoin, later selling 70% of its holdings the same year.
Despite this, Tesla retained 9,720 BTC, now valued at over $1.3 billion. This demonstrates how Bitcoin investments can yield significant returns while offering diversification.
Cowan emphasised that smaller allocations, such as 1–2% of a company’s portfolio, could be a feasible starting point for big tech firms like Amazon or Meta.
While the National Center for Public Policy Research advocates for greater institutional adoption of Bitcoin, Cowan cautioned that significant allocations, such as the 5% suggested by some proponents, remain unlikely.
He explained that Bitcoin’s volatility and lack of steady returns make it challenging to justify large-scale investments. However, he acknowledged that even modest allocations could generate momentum for Bitcoin adoption and reshape corporate treasury strategies.
Conclusion
The proposal for Meta to adopt Bitcoin as a treasury asset underscores the growing interest in cryptocurrency as a tool for corporate financial management.
While proponents like Ethan Peck highlight Bitcoin’s potential to combat inflation and enhance returns, the mixed responses from big tech companies illustrate the challenges of integrating such a volatile asset into traditional treasury strategies.
Tesla’s experience demonstrates the potential benefits of Bitcoin, but cautious approaches by companies like Microsoft highlight the risks involved.
As Meta deliberates on this proposal, the discussion reflects a broader shift in how corporations view Bitcoin’s role in their financial strategies.
Editor: Lydicius
