Faced with inflation and the poor performance of traditional assets, a Meta shareholder proposes that the company invest in Bitcoin, arguing that it is the best hedge against inflation.
Meta shareholder Ethan Peck has submitted a proposal for the company to diversify its cash reserves into Bitcoin, the world's most capitalized cryptocurrency.
The initiative seeks to protect Meta's $72.000 billion in cash and cash equivalents from inflationary erosion by leveraging the cryptocurrency's potential as a safe haven asset.
Peck's argument: Bitcoin as a shield against inflation
Ethan Peck, a staffer at the National Center for Public Policy Research, filed the motion on behalf of his family's stock. In his Valid identity document, shared via X, Peck argues that Meta is losing 28% of the value of its cash reserves due to inflation, a problem that Bitcoin could mitigate thanks to its fixed, verifiable supply.
“Bitcoin is the most resilient inflation safe haven asset available”, Peck said in the proposal.
In addition, the shareholder highlighted the outperformance that cryptocurrency has had over the years compared to traditional assets. In this context, he underlined that over the past five years, Bitcoin has outperformed bonds by an impressive 1.262%, and in 2024 it recorded an increase of 124%. These figures contrast with the modest returns of traditional financial instruments, which have been eroded by global inflation.
Source: CoinMarketCap
Peck also noted that Meta already has indirect exposure to Bitcoin through BlackRock, its second-largest institutional investor.
Meta is not alone: Microsoft and Amazon also received a similar proposal
In December 2024, the National Center for Public Policy Research introduced a similar initiative to Microsoft, urging the company to allocate at least 1% of its $484.000 billion in assets to Bitcoin. However, Microsoft shareholders voted against the proposal, citing the cryptocurrency’s volatility as a risk factor.
Despite the pushback, the mere introduction of these proposals reflects a paradigm shift in the corporate world. Large technology companies, traditionally conservative in their financial strategies, are being pressured to consider alternative assets such as Bitcoin.
In the case of Amazon, another proposal A similar one is scheduled to be discussed at the April 2025 shareholders meeting. Although a decision has not yet been made, the fact that these initiatives are gaining traction suggests that the debate over corporate adoption of Bitcoin is far from over.
Will Zuckerberg pivot to Bitcoin?
Mark Zuckerberg, CEO of Meta, could play a key role in the final decision on corporate adoption of Bitcoin. Although Zuckerberg has not publicly expressed his stance on the proposal, his track record suggests that he could be open to exploring this disruptive option.
In the past, Zuckerberg has shown interest in cryptocurrencies and blockchain technology. In 2019, Meta (then Facebook) announced the Libra project, a global cryptocurrency that was eventually abandoned due to regulatory pressures. In addition, Zuckerberg named his goats “Bitcoin” and “Max”, a symbolic gesture that some interpreted as a sign of his fascination with the market-leading cryptocurrency.
So if Meta decides to adopt Bitcoin, it could become a benchmark for other tech companies, ushering in a new era in corporate treasury management. This shift would not only protect companies from inflation, but also position them as leaders in the digital economy of the future.
