Meta shareholders propose using bitcoin to finance the company
Shareholders have urged Meta to consider using
#bitcoin to finance the $72 billion company
The proposal emphasizes bitcoin's resistance to inflation compared to bonds. Meta's board of directors is facing growing demand for innovative financial strategies
shareholders of Meta Platforms Inc. have filed a proposal asking Meta to evaluate the possibility of using bitcoin in the company's finances
the proposal was filed by Ethan Peck of the National Center for Public Policy Research on behalf of his family's shares.
Peck said Meta's cash reserves and bonds are susceptible to depreciation due to inflation. From a historical perspective, bitcoin could serve as a hedge against currency depreciation, he said.
With $72 billion in cash and cash equivalents as of Sept. 30, 2024, Meta may want to diversify its investments, Mr. Peck added.
The shareholder proposal also highlights the fact that bitcoin is a better long-term investment than bonds or cash.
The shareholder proposal also highlights the fact that bitcoin is
#Bitcoin Treasury The shareholder proposal has been sent to Meta.
According to Mr. Peck, the price of bitcoin will increase by 124% in 2024 alone. This is much higher than most other assets.
Over the past five years, bitcoin has increased in value by 1265%. Bonds, on the other hand, have lagged behind, averaging 1,245%.
The proposal also notes that inflation can negatively impact shareholder returns by lowering the value of cash.
Mr. Peck says that placing bitcoin in the Meta Treasury is a good idea, as it will allow bitcoin to
the example of companies like MicroStrategy, which increased shareholder value by 17,000% by investing in bitcoin.
Mr. Peck linked the bitcoin treasury offering to Meta's origins and the company's past experience in supporting
#blockchain technology.
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