A shareholder in social media giant Meta has proposed a bold shift in the company’s financial strategy by suggesting the adoption of Bitcoin as a corporate treasury asset.

This move comes in the wake of similar proposals submitted to major corporations such as Microsoft and Amazon, highlighting the growing push for Bitcoin adoption among institutional players.

Bitcoin Advocacy Gains Traction With Meta Shareholder Proposal

On January 10, Tim Kotzman, a Bitcoin YouTuber, revealed that Ethan Peck, a Meta shareholder, submitted a proposal urging the company to allocate a portion of its $72 billion cash reserves to Bitcoin.

“The shareholder, Ethan Peck, who is an employee at The National Center for Public Policy Research — the organization that submitted to MSFT & AMZN — informed me he submitted on behalf of his family’s shares,” Kotzman added.

In the proposal, Peck raised concerns about inflation eroding the value of Meta’s cash holdings. He argued that Bitcoin, with its strong performance compared to traditional assets, offers a hedge against inflation while enhancing shareholder value.

Peck cited Bitcoin’s impressive returns, noting a 124% increase in 2024 and a staggering 1,265% gain over five years. These figures far outpace the modest yields of bonds and other traditional financial instruments.

He also highlighted Meta’s indirect exposure to crypto through BlackRock, the company’s second-largest institutional investor, which has endorsed a 2% Bitcoin allocation for corporations. BlackRock is the issuer of IBIT, the largest spot Bitcoin exchange-traded fund (ETF) in the US.

Meanwhile, the proposal has sparked conversations in the crypto and corporate communities. Jeff Park of Bitwise speculated that Go to Source to See Full Article
Author: Oluwapelumi Adejumo