Meta Platforms Inc. is under pressure from shareholders to explore Bitcoin as a way to protect its $72 billion cash reserves from inflation.
Shareholder Ethan Peck has called for a formal evaluation, citing concerns that the company’s cash holdings are losing value and pointing to Bitcoin’s potential as a hedge. With its impressive growth—124% in 2024 alone and 1,265% over the past five years—Bitcoin offers an alternative to traditional assets like bonds, which have delivered far lower returns.
Meta’s strong financial position, with $256 billion in total assets as of late 2024, gives it the flexibility to consider such strategies.
Peck also highlighted examples like MicroStrategy, whose Bitcoin-focused approach has helped its stock outperform Meta’s by over 2,190%, and BlackRock, which recently launched a successful Bitcoin ETF and supports limited portfolio allocations to the cryptocurrency.
While Bitcoin’s volatility and regulatory uncertainties remain concerns, supporters argue it provides long-term protection against inflation. Peck and others see Bitcoin as an opportunity for Meta to align with forward-thinking companies and modernize its approach to managing cash reserves.
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Bitcoin is treading water near $105,000, but pressure is building on both sides of the trade as macro forces tighten.
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