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Meta shareholders are asking for the company to establish a Bitcoin reserve in an effort to fight inflation.
Ethan Peck, a Meta shareholder, called for a formal evaluation of the company's financial strategy, after expressing concerns about its cash holdings being devalued.
"Since cash is consistently being debased and bond yields are lower than the true inflation rate, 28% of Meta's total assets are consistently diminishing shareholder value by sitting on the balance sheet," Peck wrote in an assessment.
A #Bitcoin Treasury Shareholder Proposal has been submitted to Meta.
— Tim Kotzman (@TimKotzman) January 10, 2025
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. pic.twitter.com/KrAKw7nHwp
Peck then suggested Bitcoin as the "most inflation-resistant store of value available... compared to other liquid assets." He highlighted how Bitcoin increased 124% over the last year and 1,265% over the last five years, which outperforms bonds by 1,262%.
Meta founder Mark Zuckerberg also named his goats "Bitcoin" and "Max," Peck pointed out while highlighting that Meta director Marc Andressen is also a director at Coinbase.
"Do Meta shareholders not deserve the same kind of responsible asset allocation for the Company that Meta directors and executives likely implement for themselves?" Peck questioned.
Peck is also an employee at The National Center for Public Policy Research (NCPR) - the same organization that pushed Microsoft and Amazon to adopt Bitcoin in their reserves.
Late last year, NCPR pushed Microsoft to allocate 1% to 5% of its profits to Bitcoin purchases to boost shareholder value. However, the proposal failed to secure majority support from voting shareholders.
Blockhead
NCPR also tried to use MicroStrategy as an example to encourage Amazon to adopt Bitcoin, highlighting how MicroStrategy's stock price has risen 594% this year, vastly outperforming Amazon's 57% at the time.
Amazon shareholders seem to be supportive of the initiative too. "Shareholders request that the Board conduct an assessment to determine if adding Bitcoin to the Company's treasury is in the best long-term interest of shareholders," a shared internal document reads.
Blockhead
Peck also took a similar approach in comparing Meta's stock price to MicroStrategy's, which has outperformed Zuckerberg's tech powerhouse by 2,191% over the past five years.
He concludes his assessment by stating, "Shareholders request that the Board conduct an assessment to determine if adding Bitcoin to the Company's treasury is in the best interests of shareholders."
The move comes as Meta undergoes a "free speech" overhaul of its content moderation. Last week, Meta said it would “allow more speech by lifting restrictions on some topics that are part of mainstream discourse and focusing our enforcement on illegal and high-severity violations” and “take a more personalised approach to political content.”
“It’s time to get back to our roots around free expression on Facebook and Instagram,” Zuckerberg, said in a video post.
