Meta shareholders want Bitcoin on the Balance Sheet

• Shareholders recommend Meta evaluate Bitcoin as a potential financial asset.
• The proposal identified $72 billion in cash reserves as vulnerable to inflation.
• Contributor Ethan Peck emphasizes value preservation strategies with Bitcoin.

The shareholders of Meta Platforms Inc. pushing the company to consider adding Bitcoin to its finances as they worry about inflation eating away at the company's $72 billion in cash reserves.

Shareholder Ethan Peck is in charge of the issue calling for a formal evaluation to determine whether ​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​ has has been introduced into the Meta-finance would help to preserve value​​​​ due to rising inflation. Peck said that Meta's cash assets are “consistently depreciated” by inflation, emphasizing the need for value preservation strategies.

As of its most recent financial reports, Meta maintains a strong cash position: $72 billion in cash and cash equivalents, part of its $256 billion in total assets as of September 30, 2024. This provides flexibility to consider other investments.

However, with inflation eroding the purchasing power of traditional currencies, companies such as MicroStrategy have turned to Bitcoin as part of their financial management strategies.

Peck's proposal points to Bitcoin's past growth and its potential as an inflation hedge compared to traditional currencies and bonds. At the end of 2024, Bitcoin was up 124%, far more than bonds, which only returned about 20% on average.

Over the past five years, Bitcoin has increased by a staggering 1,265%, dwarfing the yield from bonds.

Despite these amazing figures, it is still controversial to introduce Bitcoin to corporate finances. Critics say Bitcoin's price swings and regulatory uncertainty are dangerous, but supporters say it can beat inflation in the long term and diversify corporate assets.

Bitcoin Acceptance is growing among Corporations

In addition, the proposal indicates a broader trend of Bitcoin adoption among corporations and the performance of their stocks. For example, he said that MicroStrategy has seen its stock outperform Meta by 2,190% in five years since using Bitcoin as part of its balance sheet strategy.

In addition, BlackRock, Meta's second largest institutional investor, introduced a Bitcoin ETF that became the most popular ETF in history. BlackRock has even said that putting 2% of a portfolio in Bitcoin is a smart way to protect investments.

Ultimately, Peck believes that putting some Meta resources into Bitcoin would show that they are thinking ahead and aligning themselves with what other major tech and financial companies are doing. do.