Shareholder urges Facebook parent Meta to fill its corporate treasury with Bitcoin

The National Center for Public Policy Research (NCPPR), a conservative think tank, has once again set its sights on a major tech company to adopt Bitcoin as part of its corporate treasury strategy. This time, the group is targeting Meta Platforms Inc., the parent company of Facebook, as it continues to push for greater adoption of Bitcoin in corporate finance. The proposal, submitted by NCPPR’s Ethan Peck on behalf of his family, asks Meta to allocate a portion of its corporate assets into Bitcoin. This marks another effort by NCPPR to convince corporate giants to explore Bitcoin not only as a currency but as an alternative to traditional financial assets like bonds.

This is not the first time the NCPPR has advocated for Bitcoin adoption at large corporations. Previously, they have approached tech companies such as Microsoft and Amazon, urging them to consider Bitcoin as a treasury reserve asset. Microsoft, based in Redmond, Washington, rejected the idea, but Seattle-based Amazon is reportedly considering it, with a proposal to be discussed at its shareholder meeting in April.

NCPPR’s argument for Bitcoin as a corporate treasury asset is based on its potential as a hedge against inflation and its fixed supply, which contrasts with the traditionally more volatile nature of corporate bonds. The group points to Bitcoin’s impressive performance, particularly the rise of Bitcoin exchange-traded funds (ETFs), which saw a 100% increase by the end of 2024. This performance far outpaced traditional assets such as the S&P 500 index and even the Roundhill Magnificent Seven ETF, which tracks major tech companies, including Meta, Microsoft, and Amazon. Bitcoin’s substantial return on investment has made it an attractive option for corporations looking for alternative assets to hold in their treasuries.

One of the most notable success stories is MicroStrategy, a business intelligence firm that adopted Bitcoin as a major part of its financial strategy. Under the leadership of former CEO Michael Saylor, MicroStrategy’s stock price soared by an astonishing 2,191% over five years, largely driven by its Bitcoin holdings. This strategy has made MicroStrategy a poster child for corporate treasuries filled with cryptocurrency, and NCPPR is keen on seeing other tech giants follow in its footsteps.

However, Meta’s journey in the digital currency space has been marked by setbacks. The company, which was still known as Facebook in 2019, launched the Libra project, an ambitious plan to create a global stablecoin backed by a basket of fiat currencies and government securities. The goal was to enable low-cost, seamless transactions worldwide, particularly targeting the unbanked population. Unfortunately, Libra faced intense regulatory pushback from governments and financial authorities across the globe. Concerns around monetary sovereignty, data privacy, and the potential for misuse for illicit activities led to the eventual abandonment of the project.

In 2020, Libra was rebranded as Diem, with a focus on creating a U.S. dollar-backed stablecoin. Meta attempted to gain support from major financial institutions like Visa, Mastercard, and PayPal, but these companies eventually withdrew their support. By early 2022, Meta decided to sell the Diem project to Silvergate Bank for $200 million, marking the end of its venture into creating its own cryptocurrency.

Despite these challenges, Meta’s interest in digital currencies is still present, and the NCPPR sees Bitcoin as a viable alternative for the company. The proposal calls on Meta to learn from the experiences of MicroStrategy and other companies that have successfully integrated Bitcoin into their financial strategies. While the Libra and Diem projects may have failed, Meta could potentially benefit from holding Bitcoin as part of its treasury, given the cryptocurrency’s rising value and the increasing adoption of digital assets in mainstream finance.

Whether Meta CEO Mark Zuckerberg and the company’s board of directors will heed the advice of the NCPPR remains to be seen. The decision would be significant for the company, given its previous attempts at creating its own digital currency and the potential for Bitcoin to act as a hedge against traditional financial risks. The proposal also signals the growing influence of Bitcoin in the corporate world, especially as companies like MicroStrategy and Amazon explore its potential as a store of value and a hedge against inflation.

If Meta chooses to incorporate Bitcoin into its treasury, it would represent a major shift in corporate finance. Bitcoin’s role as an alternative asset class could help corporations diversify their holdings and potentially achieve higher returns compared to traditional investments. However, the decision to invest in Bitcoin also comes with risks, such as the cryptocurrency’s volatility and regulatory uncertainty, factors that Meta and other companies will need to weigh carefully.

In the end, the NCPPR’s proposal to Meta is part of a broader movement pushing for the mainstream adoption of Bitcoin in the corporate world. With the rise of Bitcoin ETFs and the growing recognition of cryptocurrency as a legitimate asset class, it is likely that more companies will begin to consider Bitcoin as part of their financial strategies. Whether Meta will be one of the first major tech companies to take this step remains uncertain, but the NCPPR’s persistent efforts suggest that Bitcoin’s influence in the corporate treasury space is far from over.