A shareholder of Meta has proposed evaluating the potential inclusion of Bitcoin 
$94,120 in the company’s treasury. This proposal highlights Bitcoin’s historical growth and its potential as an asset resistant to inflation compared to traditional cash and bonds.
Bitcoin’s Investment Performance
According to the proposal, Bitcoin’s price is expected to increase by 124% by the end of 2024, surpassing average bond returns. Over the past five years, Bitcoin’s price soared by 1,265%, while bonds lagged with an average return of 1,245%. Currently, Bitcoin’s price fluctuates between a daily high of $95,770 and a low of $92,250.
The recommendation states that Bitcoin is transitioning from an investment or payment method for companies and institutions to a treasury asset. MicroStrategy, an early investor in Bitcoin, claims to have increased its equity by 17,000% using BTC in its balance sheet strategy. BlackRock has also introduced a Bitcoin ETF, indicating a promising approach for future investments.
The proposal indicates that Meta’s leadership and stakeholders are interested in Bitcoin and its ecosystem. Meta founder Mark Zuckerberg and Coinbase board member Marc Andreessen have previously supported blockchain and cryptocurrencies.
“Incorporating Bitcoin into our company’s treasury strategy could be a significant step for shareholder value.”
The proposal’s author argues that Meta’s leaders and executives likely employ similar financial management strategies. Additionally, a bill presented to the New Hampshire legislature allows the state treasury to hold Bitcoin as a reserve asset alongside precious metals like gold and silver.
“Utilizing Bitcoin as a strategic asset can bolster our company’s financial management.”
Crypto expert John Deaton noted that a similar proposal was rejected by Microsoft shareholders, suggesting Meta shareholders might face a comparable situation. However, he pointed out that should laws supporting Bitcoin adoption emerge in the future, BTC could gain strategic importance.
The proposal suggests that integrating Bitcoin into Meta’s treasury could enhance the company’s financial management strategies and align with other leading corporations. Recognizing Bitcoin as a corporate treasury asset could strengthen financial diversification strategies and provide protection against inflation. Nonetheless, given Bitcoin’s volatility, such a move requires careful consideration.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.
