Meta Shareholder Ethan Peck Proposes Converting Part of Company's US$72B Cash Reserves into Bitcoin (BTC)

Bitcoin Treasury Assessment, as the proposal is titled, is gaining popularity on social media due to its focus on financial strategy and cryptocurrency adoption.

A Meta shareholder named Ethan Peck has submitted a proposal urging the company to convert part of its US$72B (AU$116B) cash reserves into Bitcoin (BTC). Titled ‘Bitcoin Treasury Assessment,’ the proposal has gained traction on social media.

Peck, who submitted the proposal on behalf of his family’s shares in Meta, highlighted the company’s culture of innovation, which he said aligns with Bitcoin, particularly given its performance and ability to counter risks such as inflation.

The proposal also noted that Meta’s large cash holdings are facing devaluation due to inflation, presenting Bitcoin as a potential hedge. According to Peck, Bitcoin has significantly outperformed traditional financial instruments like bonds, with impressive returns of over 124% in 2024 and over 1,200% over the past five years.

“This is not an isolated initiative. Other Bitcoin proponents have urged corporations to use their treasuries and buy some BTC. They usually share the same premise — Bitcoin as a hedge against inflation, currency devaluation, better performance, etc.”

However, not all corporations have been receptive to such proposals. For instance, Microsoft shareholders rejected a proposal by Michael Saylor to invest in BTC, citing its “volatility.”

Meta has not yet publicly addressed the proposal, leaving the uncertainty over its outcome and potential impact on the company’s financial strategy.

If Meta were to adopt Bitcoin as a treasury asset, it would join a growing list of companies exploring the flagship crypto as part of their financial strategies. It remains to be seen whether such a move could inspire other corporations to invest in Bitcoin, making it a mainstream corporate finance asset.