Meta may add bitcoins to its reserves
Meta shareholder pushes for Bitcoin treasury allocation
A Meta shareholder has proposed that the tech giant consider incorporating Bitcoin into its treasury, citing its strong historical growth and inflation-resistant properties compared to traditional cash and bonds.
The proposal emphasizes Bitcoin’s potential to preserve shareholder value amid inflation and highlights its adoption as a treasury asset by leading corporations and institutions, reports CoinGape.
Bitcoin’s Performance Outshines Traditional Assets
The shareholder proposal underscores Bitcoin’s remarkable performance. By the end of 2024, Bitcoin had surged 124% year-over-year, far outpacing the average returns of bonds. Over the past five years, Bitcoin’s price has risen by 1,265%, compared to a mere 20% increase for bonds.
The proposal also highlights Meta’s $72 billion in cash and cash equivalents, a significant portion of its total $256 billion in assets as of Q3 2024, as being vulnerable to inflation. Allocating part of these reserves to Bitcoin, despite its volatility, could help hedge against depreciation and enhance shareholder value.
Growing Bitcoin Adoption Among Corporations
The proposal draws parallels to other companies that have embraced Bitcoin as a treasury asset. MicroStrategy, for instance, saw its equity skyrocket by 17,000% after adopting a Bitcoin-based balance sheet strategy. Similarly, Block (formerly Square) outperformed the Nasdaq index by 2.5 times, surpassing Meta’s financial returns by 12 times.
BlackRock, Meta’s second-largest institutional investor, has also been a vocal advocate for Bitcoin. Its Bitcoin ETF has become the most popular in history, with the asset manager recommending a 2% Bitcoin allocation for long-term investment. These trends, the proposal suggests, validate Bitcoin’s role in corporate treasury strategies.
Meta’s Leadership and Broader Trends
The submission also notes support for blockchain and cryptocurrencies from Meta’s leadership. Mark Zuckerberg and board member Marc Andreessen—who also sits on Coinbase’s board—have shown interest in the crypto ecosystem.
The shareholder further references global trends, such as New Hampshire’s recent bill allowing Bitcoin as a reserve asset, alongside companies like Heritage Distilling and Genius Group adopting Bitcoin in their treasuries. These examples signal the mainstreaming of Bitcoin as a strategic financial tool.
The proposal advocates for Meta to align with these forward-thinking companies, suggesting that integrating Bitcoin into its treasury would reflect progressive financial stewardship and cement its position as a leader in innovation.
Recently we wrote, that El Salvador continues its aggressive Bitcoin strategy, with President Nayib Bukele hinting at potential purchases during the US government’s upcoming BTC auction.
