Meta shareholder proposes Bitcoin investment to hedge against inflation, following similar moves by Microsoft and other tech giants.
A shareholder in Meta, the parent company of Facebook, has proposed a major shift in the company’s financial strategy. Ethan Peck, a staffer for The National Center for Public Policy Research, urged Meta to take a portion of its $72 billion in cash reserves and spend it on Bitcoin. It comes just days after similar proposals were made to other massive companies like Microsoft and Amazon. The move comes as institutional investors become increasingly interested in Bitcoin.
On January 10, Bitcoin YouTuber Tim Kotzman unveiled the proposal. Kotzman says that the proposal was submitted by Peck on behalf of his family’s Meta shares. The proposal’s main purpose is to combat inflation that eats away the value of the cash Meta holds. With Bitcoin’s strong performance, Peck said that could serve as a hedge against inflation, while also boosting shareholder value.
In recent years, Bitcoin has shown impressive performance, according to Peck. The cryptocurrency increased in value by 124% in 2024. It also rose by a huge 1,265% over the past five years. The returns on these gains are far higher than those from traditional assets such as bonds.
Tech Giants Like Meta and Microsoft Show Growing Interest in Bitcoin
Peck also noted that Meta is already indirectly exposed to cryptocurrency, given that BlackRock, its second largest institutional investor, is invested in Bitcoin. BlackRock has backed Bitcoin and recommended companies put 2% of their cash reserves in it. IBIT is the largest Bitcoin exchange-traded fund (ETF) in the U.S., issued by BlackRock.
Other major corporations also seem interested in Bitcoin. This includes Microsoft, who has said they will consider accepting it as payment at some point. Later that same year, Michael Saylor executive chairman of MicroStrategy, gave brief presentation before Microsoft’s board to encourage the company to use Bitcoin. Saylor is a vocal Bitcoin advocate who believes that tech giants such as Microsoft simply can’t withstand another opportunity to miss the next big tech trend.
The proposal could mark a change in how some of the biggest companies are handling their reserve. The adoption by Meta for Bitcoin would add it to the growing company list that is treating Bitcoin as a valuable asset for the future. With cryptocurrency staying trend, more companies can be expected to follow suit.
