A shareholder of Meta contributed Bitcoin to the company’s treasury. $94,343.8 submitted a proposal to evaluate the potential for inclusion. The proposal highlights Bitcoin’s historical growth and its potential as an inflation-resistant asset compared to traditional cash and bonds.
Investment Performance of Bitcoin
According to the proposal, by the end of 2024, the Bitcoin price will increase by 124 percent, surpassing the bond average. While the price of Bitcoin increased by 1,265 percent in the last five years, bonds remained in the background with an average return difference of 1,245 percent. Currently, Bitcoin price is fluctuating between a daily high of $95,770 and a low of $92,250.
The proposal states that Bitcoin has transformed from an investment or payment method for companies and institutions into a treasury asset. MicroStrategy, a company that purchased Bitcoin early on, claims to have increased its equity capital by 17,000 percent by using BTC in its balance sheet strategy. BlackRock also introduced the Bitcoin ETF and stated that it is a good approach for the future of investment.
The proposal indicates that Meta 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.
“Adding Bitcoin to our company’s treasury strategy could be an important step in protecting our shareholders’ value.”
The proponent argues that Meta leaders and managers likely use similar financial management strategies. He also notes that a bill introduced in the New Hampshire legislature would allow the state treasury to hold Bitcoin as a reserve asset alongside precious metals like gold and silver.
“Using Bitcoin as a strategic asset can strengthen our company’s financial management.”
A crypto expert named John Deaton stated that a similar proposal was rejected by Microsoft shareholders and Meta shareholders may be in a similar situation. However, he pointed out that BTC could gain strategic importance if laws supporting Bitcoin adoption are passed in the future.
The proposal suggests that including Bitcoin in Meta’s treasury could be a step forward in the company’s financial management strategies and in line with other leading companies.
Accepting Bitcoin as a corporate treasury asset could strengthen companies’ financial diversification strategies and protect against inflation. However, 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 crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
