Meta Shareholders Urge Company to Diversify Assets with Bitcoin
As the global economy continues to grapple with inflation and currency debasement, a growing number of investors are turning their attention to Bitcoin (BTC) as a potential hedge against financial uncertainty. One such investor is Ethan Peck, a Meta shareholder who has submitted a proposal to the social media company’s board of directors urging them to convert a portion of its $72 billion in cash and short-term cash equivalents to BTC.
The Proposal
In his submission, Peck argues that Meta is losing 28% of its cash assets over time due to inflation. He cites Bitcoin’s impressive performance over the past five years, noting that it has outperformed bonds by a staggering 1,262%. This, he believes, makes a strong case for the company to adopt BTC as a diversification strategy.
Peck also draws attention to the fact that Meta directors and executives likely have their own responsible asset allocation strategies in place, citing Mark Zuckerberg’s fondness for naming his goats "Bitcoin" and "Max" as evidence of his interest in the cryptocurrency. He also mentions Marc Andreessen, a Meta director who has publicly praised Bitcoin and serves on the board of Coinbase.
The National Center for Public Policy Research
Peck is an employee of The National Center for Public Policy Research (NCPPR), a Washington DC-based think-tank that promotes free market policies. NCPPR submitted similar Bitcoin treasury shareholder proposals to Microsoft and Amazon in 2024, with the former voting down the proposal in December of that year.
The NCPPR’s proposal to Meta is not unique, however. The organization has also proposed that Amazon allocate at least 1% of its $484 billion assets to BTC. In both cases, the argument put forward by NCPPR is that traditional measures of inflation, such as the Consumer Price Index (CPI), are inadequate and fail to accurately capture the true rate of inflation.
Why Big Tech Firms Are Hesitant
Despite the merits of Bitcoin as a diversification strategy, big tech firms like Meta, Microsoft, and Amazon have been slow to adopt it. One reason for this is their size and positions of strength in highly profitable sectors. According to Nick Cowan, CEO of fintech firm Valereum, these companies are hesitant to allocate 5% or more of their assets to BTC due to its high volatility.
Cowan also points out that Bitcoin’s lack of native yield-bearing opportunities makes it an unappealing option for large corporations seeking stable returns on investment. This hesitation is reflected in Microsoft’s rejection of the NCPPR proposal, which highlights the challenges faced by those advocating for greater adoption of BTC among big tech firms.
The Case for Bitcoin
While some may view Bitcoin as a high-risk, high-reward asset, others see it as a necessary hedge against financial uncertainty. In an era where inflation and currency debasement are becoming increasingly prevalent, investors like Peck are urging companies to take a more proactive approach to managing their assets.
Peck’s proposal to Meta is just one example of the growing trend towards greater adoption of BTC among institutional investors. As more and more individuals turn to Bitcoin as a store of value and a means of diversification, it will be interesting to see whether big tech firms like Meta ultimately follow suit.
The Road Ahead
As Peck noted in his proposal, "Meta directors and executives likely implement responsible asset allocation strategies for themselves." It is unclear at this time whether the company’s board of directors will take his suggestion seriously, but one thing is certain: the debate over Bitcoin’s place in corporate treasuries is far from over.
Conclusion
As investors continue to grapple with the challenges posed by inflation and currency debasement, the case for Bitcoin as a diversification strategy becomes increasingly compelling. While big tech firms like Meta may be hesitant to adopt BTC at present, it will be interesting to see whether they ultimately follow the lead of smaller companies and individuals who have already begun to allocate significant portions of their assets to the cryptocurrency.
Only time will tell if Peck’s proposal to Meta will bear fruit, but one thing is certain: the future of Bitcoin in corporate treasuries remains bright.
