Meta Shareholder Calls for Bitcoin to Preserve the Company’s $72 Billion Cash Reserves

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One shareholder of Meta, the well-known social media corporation, has dared to propose a significant change in the company’s financial approach by advocating for the incorporation of Bitcoin as an investment within their corporate reserves.

This action follows a trend seen in recent submissions to companies like Microsoft and Amazon, suggesting an increasing institutional interest in adopting Bitcoin.

Bitcoin Advocacy Gains Traction With Meta Shareholder Proposal

On January 10th, Bitcoin video content creator, Tim Kotzman, disclosed that Ethan Peck, a stockholder in Meta, had proposed a plan to the corporation. This plan suggested that Meta, with its $72 billion in liquid funds, should set aside a portion of it for investing in Bitcoin.

Kotzman mentioned that Ethan Peck, a staff member at The National Center for Public Policy Research (which made submissions to both Microsoft and Amazon), communicated to him that he had submitted the material on behalf of the shares owned by his family.

In the suggested plan, Peck expressed apprehensions regarding inflation potentially reducing the worth of Meta’s cash reserves. He proposed that Bitcoin, which has shown remarkable growth relative to conventional investments, could serve as a safeguard against inflation and simultaneously boost shareholder returns.

In 2024 alone, Bitcoin saw an astounding rise of 124%, while over a five-year period, its growth was even more remarkable at 1,265%. This performance significantly surpasses the relatively small returns offered by bonds and other conventional financial investments. (Peck made this observation when citing Bitcoin’s impressive returns.)

He additionally emphasized that Meta has an indirect connection to cryptocurrencies due to BlackRock, its second-biggest institutional investor, advocating for corporations to allocate 2% of their assets into Bitcoin. Notably, BlackRock is responsible for IBIT, the most significant spot Bitcoin exchange-traded fund (ETF) available in the United States.

In both the cryptocurrency world and corporate circles, discussions have been ignited by the proposal. Bitwise’s Jeff Park mused that Mark Zuckerberg’s reservations about conventional systems might resonate with Bitcoin’s decentralized philosophy.

If Zuck (short for Mark Zuckerberg) gains insight from his 2020-2024 experiences in the realm of cryptocurrency, he may significantly influence this field. Keep a close eye on him as his future actions could potentially reshape Meta’s existing strategy. This is according to Park’s statement.

Mark Zuckerberg, holding about 13.5% of Meta’s common stock and having more than half of the voting power, holds significant influence that could shape the outcome of this decision.

Furthermore, Peck’s plan echoes a wider trend promoting Bitcoin as part of corporate reserves. Notably, similar endeavors aimed at Microsoft and Amazon in the year 2024; however, outcomes have been mixed. Microsoft shareholders dismissed the idea due to Bitcoin’s volatility, whereas Amazon has yet to respond to a proposal suggesting a 5% investment.

Nonetheless, proponents of cryptocurrency such as Erik Voorhees maintain that businesses could potentially reap greater benefits from Bitcoin investments compared to governments. They contend that embracing Bitcoin doesn’t just safeguard value, but also empowers companies to prosper in a rapidly digitizing economic landscape.

Voorhees suggests that there should be more support for corporate treasuries investing in Bitcoin, while nation states’ involvement should be limited. He believes that corporations, as value-producers, are deserving of such investments, whereas nations, which often destroy value, are not.

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2025-01-11 22:11