Meta Platforms Inc.* shareholders are pushing the company to consider adding bitcoin to its treasury as they worry that inflation is eating into the company's $72 billion in cash reserves.
The campaign is led by shareholder Ethan Peck, who is calling for a formal assessment to determine whether adding bitcoin to Meta's treasury can counter rising inflation.
According to its latest financial reports, Meta has $72 billion in cash and cash equivalents, part of its total assets of $256 billion (as of September 30, 2024).
With inflation eroding the purchasing power of traditional currencies, Peck suggested looking to MicroStrategy's experience to hedge risks with Bitcoin.
At the end of the year 2024 Bitcoin has risen 124%, far more than bonds, which have averaged about 20%. Over the past five years Bitcoin rose a whopping 1265%, completely eclipsing bond yields.
The shareholder initiative points to an acceleration in the adoption of Bitcoin among corporations. MicroStrategy, in particular, saw its shares outperform Meta by 2190% over five years of using Bitcoin as a reserve.
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