Bitcoin-Based Strategy to Hedge Meta’s $72 B Against Inflation Risks: Pecks Proposal Says

• Ethan Peck urges Meta to convert cash assets to Bitcoin.
• Proposal follows similar moves by Microsoft and Amazon.
• Bitcoin’s 1,265% growth over 5 years highlights its potential.

A shareholder proposal urges Meta to allocate a portion of its $72 billion cash reserves to Bitcoin as a hedge against inflation. The move shows the strong performance of BTC and the growing interest to use it as a corporate treasury asset.

Meta’s Bitcoin adoption proposal

Meta shareholders have received a proposal urging the company to allocate part of its $72 billion in cash assets to purchase Bitcoin. The suggestion aims to hedge against inflation risks and improve shareholder value. The proposal, submitted by Ethan Peck, highlights BTC’s better performance compared to traditional assets like bonds.

Peck, an employee of The National Center for Public Policy Research, says that Bitcoin’s fixed supply makes it an inflation-resistant store of value. According to Peck, Meta’s cash reserves have declined by 28% of their value over time because of inflation. In his submission, Peck says the 1,265% increase in the value of BTC over the past five years as proof of its potential to outperform traditional assets.

Meta’s Mark Zuckerberg and Marc Andreessen have shown interest in the crypto space. Zuckerberg named his goats, Bitcoin and Max, while Andreessen has praised the cryptocurrency. Peck’s proposal challenges Meta to apply the same financial strategy to its shareholders to apply as they implement for the company’s directors and executives.

Meta’s inflation hedge

Meta’s substantial cash reserves make the company a strong contender to incorporate Bitcoin into its treasury strategy. As inflation continues to erode the value of traditional assets, the proposal urges the company to consider BTC as a long-term investment. This could help Meta remain competitive and strengthen its position as a leader in innovation.

The proposal serves as a reminder that BTC is being viewed not just as a speculative asset but as a proper financial tool. Through adopting a Bitcoin-based strategy, Meta could partner with other like-minded companies. This could ultimately strengthen its financial resilience against inflation and market volatility.

BTC continues to outperform traditional investment options. The value of BTC increased by 124% by the end of 2024, while bonds only saw a 20% increase. This clear contrast reinforces the argument for corporate adoption of BTC as a hedge against inflation and currency debasement.

Surge in Bitcoin treasury and reserve adoption

The proposal comes after similar ones submitted to Microsoft and Amazon in 2024. In these proposals, the organization recommended a diversification of corporate treasuries by allocating part of their assets to BTC. Both companies rejected the proposals because of Bitcoin’s volatility and lack of yield-bearing opportunities.

However, the idea of BTC as a treasury asset has gained footing among corporations. For example, MicroStrategy adopted a Bitcoin-based balance sheet strategy which saw a 17,000% increase in its equity. Other companies, such as Block and BlackRock, have also integrated BTC into their financial strategies, thus improving their financial returns.

Peck’s proposal shows the growing acceptance of BTC among several businesses. For instance, New Hampshire recently passed a bill that made BTC an eligible reserve asset. This trend signals the adoption of BTC as a mainstream strategic financial tool for companies that seek to protect their assets from inflation.