The proposal calls on Meta to replace some of its cash and bonds with BTC, but is unlikely to gain broader support.
Facebook Parent Company Meta Should Consider Investing in Bitcoin, According to a recent shareholder proposal.
The proposal calls Bitcoin “the most inflation-resistant store of value available” and highlights Bitcoin’s strong one- and five-year performance.
Cash, cash equivalents and marketable securities such as bonds account for $72 billion of Meta’s $256 billion in assets. That $72 billion subtotal is “consistently diminishing shareholder value,” according to the proposal, and Meta arguably has a fiduciary duty to consider assets with higher appreciations even if those assets are volatile.
By investing in Bitcoin, Meta could arguably avoid the devaluation of cash and its equivalents. It could also avoid below-inflation bond yields.
Meta should consider the benefits of exchanging “even a small percentage” of its cash and bonds for Bitcoin, the proposal concludes.
The proposal notes that Meta members have some familiarity with Bitcoin. He notes that Marc Andreessen, director of Meta, has endorsed Bitcoin and is a director of the cryptocurrency exchange Coinbase.
Meanwhile, Meta CEO and Chairman Mark Zuckerberg has apparently taken a joyful interest in cryptocurrencies, as he has a pet goat named “Bitcoin.” It is unclear whether Zuckerberg actually invests in BTC or other cryptocurrencies.
The proposal implies that Meta members can own cryptocurrencies, stating:
“Don’t Meta’s shareholders deserve the same kind of responsible asset allocation… that Meta’s directors and executives are likely to implement for themselves?”
The document also notes that other parties are involved in Bitcoin, listing as examples MicroStrategy’s aggressive Bitcoin purchases and the US government’s possible BTC strategic reserve. Additionally, it notes that BlackRock has launched a Bitcoin spot ETF. and believes that a 2% Bitcoin allocation is reasonable.
The proposal appears to be a small-scale effort. A sole shareholder, Ethan Peck, submitted the proposal to Meta on behalf of his family’s shares.
Peck is deputy director of the Free Enterprise Project at the National Center for Public Policy Research. The National Center, a conservative think tank, has also made similar proposals to Microsoft and Amazon in recent months.
Although these proposals have received extensive media coverage, they have apparently failed to gain traction among shareholders themselves. Microsoft told shareholders to vote against exploring an investment in Bitcoin in December. Shareholders sided with Microsoft and ultimately rejected the proposal.
Amazon and Meta have not commented or held shareholder meetings since the latest proposals. But without any indication of broader support, each proposal appears to have little chance of success.
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