A shareholder in Facebook’s parent company Meta urged Mark Zuckerberg to adding Bitcoin to its treasury assets by converting some of the social media company’s $72 billion in cash into crypto.
Ethan Peck recommended turning some of Meta’s cash holdings into the first-born crypto to increase shareholder value and protect it from inflation.
Bitcoin proposal
Cryptoanalyst Tim Kotzman revealed in an X post that a shareholder named Ethan Peck submitted a proposal to Meta asking the tech giant to Bitcoin part of the company’s own assets.
“The shareholder, Ethan Peck, who is employed by the National Center for Public Policy Research – the organization that submitted to $MSFT & $AMZN – informed me that he was submitting on behalf of his family’s shares,” Kotzman said in a post.
Peck, who filed Bitcoin proposalworks for the Washington DC-based research organization National Center for Public Policy Research. He said he asked the Zuckeberg-led company to improve the value of Meta’s shares using crypto. Peck’s family owns several shares in the company.
A #Bitcoin Treasury shareholder proposals have been submitted to Meta.
The shareholder, Ethan Peck, who is employed by The National Center for Public Policy Research – the organization that submitted $MSFT & $AMZN – informed me that he was filing on behalf of his family’s shares. pic.twitter.com/KrAKw7nHwp
— Tim Kotzman (@TimKotzman) 10 January 2025
Crypto can combat declining value of cash
Peck said 28% of Meta assets are constantly reducing shareholder value simply by being on the balance sheet, arguing that cash regularly deteriorates while bond yields are lower than real inflation.
“Meta should — and may have a fiduciary duty to — consider replacing some, or some percentage, of those assets with assets valued more than bonds, even if those assets are more volatile in the short term,” Peck noted in the proposal.
BTCUSD trading at $93,461 on the daily chart: TradingView.com
Therefore, the shareholder believes that crypto would solve this problem, saying, “Bitcoin is the most inflation-resistant store of value available.”
“Don’t Meta shareholders deserve the same kind of responsible asset allocation for the company that Meta directors and executives likely implement for themselves?” Peck told Meta in the proposal.
2% crypto allocation
Peck cited that Meta could follow BlackRock’s 2% BTC allocation that can be applied to the company’s Bitcoin strategy. BlackRock is Meta’s second largest institutional investor.
Peck said Bitcoin has outperformed bonds by about 119% on average, adding that the top coin’s price rose 124% last year.
“Over the past five years, the price of Bitcoin has increased by 1,265%, outperforming bonds by approximately 1,262% on average,” he explained.
Institutional adoption of Bitcoin has now become a common scenario in the corporate world as many public companies “add Bitcoin to their coffers every week.” It’s a financial strategy that proves to be good for business.
Peck argued that Meta is a company that does not follow technological trends because it is the company that set them, and said that it could become a leader in institutional Bitcoin adoption if it seizes this opportunity.
“Meta should evaluate the merits of exchanging some – even just a few percent – of its cash and bonds for Bitcoin,” he concluded.
Featured image from Search Engine Journal, charts from TradingView